Bitcoin (BTC) proponents argue that the maiden cryptocurrency maintains bullish underlying fundamentals, with the recent approval of a spot exchange-traded fund (ETF) in the United States adding to its strength.
In particular, SkyBridge Capital founder Anthony Scaramucci believes that Bitcoin will likely surpass $100,000 by 2025, citing the halving event’s impact, Reuters reported on January 15.
Although the spot ETF has fallen short of the near-term expectations on Bitcoin’s valuation, Scaramucci pointed out that the long-term impact of the product, coupled with the halving, will drive the asset to $170,000 by 2025.
Speaking in Davos amid the ongoing World Economic Forum (WEF), Scaramucci noted that Bitcoin will likely grow fourfold in the coming months.
“If Bitcoin’s at $45,000 on the halving, where it roughly is right now, it’ll be $170,000 by mid-to-late 2025. <…> Wherever the price is on the day of the halving in April, multiply it by four, and it’ll reach that price in the next 18 months,” he said.
Impact of selling pressure on Bitcoin ETF
On the ETF falling short of the initial expectations, Scaramucci suggested that the performance was likely a result of investors shifting away from the Grayscale Bitcoin Trust to the spot ETF.
Notably, he projected that the effect of the ETF on the price would likely manifest in eight to ten days after approval. In this scenario, analysts maintain that an impending bull run is likely as investors transition to new institutional crypto products and Bitcoin faces a supply shock due to its upcoming halving event.
His observations on the unexpected ETF performance align with the analysis of reformed hedge fund manager James Lavish, who suggested that it was likely due to high selling pressure from GBTC holders converting to the spot fund.
As reported by Finbold, despite the ETF’s failure to have the desired effect on cryptocurrency prices, the products recorded a significant volume, totaling almost $10 billion within the first three days.
Meanwhile, Bitcoin continues to trade above the $42,000 support zone. At press time, BTC was valued at $42,364 with weekly losses of almost 10%.
