After the cryptocurrency market went crazy following rumors that the US Securities and Exchange Commission (SEC) had approved BlackRock's spot Bitcoin exchange-traded fund (ETF) application, one analyst has now suggested that the BTC dollar could rise to $1 million and above $21. market capitalization trillion.

As CryptoGlobe reported these rumors quickly spread from social media to Bloomberg Terminal, BTC was seen topping $30,000 and quickly falling after BlackRock stated that the ETF was still under review, leading to liquidations of over $100 million in a single hour. .

Analyst Alessandro Ottaviani on microblogging platform The ratio is 100:1, meaning that for every dollar that entered the market, the market cap of BTC increased by $100.

The analyst quoted a former BlackRock Director as saying that between $150 billion and $200 billion of value could be expected to enter the Bitcoin market within three years after a spot Bitcoin ETF is approved in the US.

Spot Bitcoin ETF will provide a regulated and mainstream investment vehicle for investors to gain exposure to Bitcoin without directly owning the cryptocurrency.

Using the same rate, the analyst said that a capital inflow of $ 200 billion would theoretically increase the Bitcoin market value to $ 21 trillion. In such a scenario, the price of Bitcoin would reach $1 million per coin.

However, he acknowledges that as the price of the flagship cryptocurrency rises, more holders will likely begin selling their coins, which could potentially offset some of the price increases.

Despite the rise and fall that the Bitcoin price has experienced this week, BlackRock CEO Larry Fink said the rally revealed "increased interest in crypto" and believed the rally was a "flight to quality." "Israeli war issues and global terrorism."

BlackRock's CEO added that the firm is "hearing from clients around the world about the need for crypto." As CryptoGlobe reported, SkyBridge Capital founder and managing partner Anthony Scaramucci recently announced that he believes Bitcoin's market cap could reach $15 trillion, approximately 2,660% above its current $540 billion market cap.