Nic Carter, founder of Castle Island Ventures and co-founder of Coin Metrics, predicts when Bitcoin (BTC) could start to rise again.
In a new Bloomberg Television interview, Carter says say he believes Bitcoin will take off in price months following the possible approval of Bitcoin Exchange Traded Funds (ETF) in the US.
“Well, of course there may be a tax sale to end the year here, and we’ve seen the market give up some of those gains in recent days. But fundamentally it’s about expectations versus catalysts.
And the market is thoroughly expecting the ETF at this point, and I think the big rally that we’ve seen from the $20,000s, low $30,000s to mid-$40,000s for Bitcoin, I think is almost entirely ETF based. And so on the day of [the potential BTC ETF approval]there may be a bit of a pop, but I think the effect may be muted.
Where I expect the price to develop is something I’m excited about in the medium term. I think what you’ll then see is RIAs (registered investment advisors) and other types of financial entities that previously weren’t able to necessarily recommend Bitcoin to their clients will have the ability to do that with the ETFs.
I think we’re going to see a marketing burst from the major ETF sponsor, some of the largest financial institutions in the world, and that’s when this thing really takes off as we get into 2024 and into the rest of 2024.”
Carter also says he expects the approval of spot BTC ETFs on January 8, and he believes the ETFs will have a much bigger impact on Bitcoin’s value than Bitcoin’s halving in April 2024, when miners’ rewards will be cut in half , which reduces the new supply of Bitcoin. BTC.
“The market at this point is almost certain that we will get an ETF in the coming days. Most analysts think this will happen before January 10. I think it will probably happen on the eighth. The price in the short term therefore certainly reflects that expectation. So we may even see a new sales event here.
In the medium term, however, the ETF opens up entirely new capital classes that would otherwise not be able to enter the market, and which cannot be allocated to Bitcoin. So I think you will see structural flows that will be positive for Bitcoin.
I am probably less constructive about the halving. I think it makes a very marginal difference. You only see a small effect on supply in terms of marginal supply creation. So the halving is a less exciting development.”
Bitcoin is trading at $42,559 at the time of writing, down almost 2% in the past 24 hours.
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