Gone were the days when one Bitcoin (BTC) wasn’t even enough to buy a full-sized pizza and $10K per coin was such a stratospheric prospect. Now, the argument is whether or not it could breach a new all-time high of $100K. Setting aside the forecasts of Ark Invest CEO Cathie Wood and venture capitalist Tim Draper, here’s another take from The Motley Fool regarding the subject.
Spot Bitcoin ETFs’ Failure to Launch BTC
Addressing the elephant in the room, The Motley Fool starts by pointing out that the approval of spot Bitcoin exchange-traded funds (ETFs) in the US didn’t exactly pan out as many optimistic analysts and investors had expected. So far, it failed to elevate the digital asset they are based on to new heights. Right now, it is even struggling to tap the $50K line.
According to its analyst, it appeared that what spot Bitcoin ETFs did was only move Bitcoin investors away from the crypto asset to another financial instrument (the ETF). It was observed that their level of Bitcoin exposure merely remained the same, too.
The Bitcoin Halving will be the Real Game-Changer
As they say, “Past performance is no guarantee of future performance.” However, the stock investing and market research firm claimed that although it is risky to assume that Bitcoin will 100% moon on the next halving, it only makes sense to assume that the resulting scarcity of BTC following the event coupled with its deflationary effect could potentially trigger a renewed interest to the world’s most dominant crypto by market cap.
Along the way, this could push the digital asset to rally. But then again, while the possibility of a $100K top is not impossible, the road there could be bumpy.
Previously, analysts warned of a “sell the news” scenario occurring in the immediate aftermath of the halving. This should be similar to what took place right after the US Securities and Exchange Commission (SEC) greenlit the much-anticipated spot Bitcoin ETFs.
BTC could tank as low as $33K at this point, which should truly test every HODLer’s resolve. Next, it could replicate its $49K peak last month before consolidation and trading sideways for a time.
With that, it may take 12 to 18 months until the charge of the bulls will really be felt. Nevertheless, the source remains confident that Bitcoin breaching the $100K boundary by the end of the current year is likely.
The Motley Fool’s Position in BTC
So, just how confident is the investment adviser over Bitcoin? Based on its disclosure, 112 of its employees and contractors collectively referred to as “Fools” hold long positions in the crypto asset. In fact, it ranks number 25 in the Fools’ preferred stocks.
The top three companies where The Motley Fool and its associates have the most long positions include Apple held by 276 Fools, Amazon staked by 246 Fools, and Walt Disney wagered on by 243 Fools.
While these bits of information are truly reassuring, due diligence is recommended when deciding your financial future. Thus, don’t take this report as investment advice on our part but merely a tool to supplement your research.