Meanwhile, speculation about spot Bitcoin exchange-traded funds (ETFs) is reaching epic proportions. The market is patiently waiting for American approval Securities and Exchange Commission (SEC), which, according to experts, will not take long. Almost everyone expects that we will get the green light from the US financial regulator by January 10th at the latest.
What will happen next is difficult to predict, but there is already an interesting development that no one is talking about.
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This is bullish for Bitcoin
Most of the public debate about the spot Bitcoin ETF revolves around the expected DIRECT capital inflow from retail and institutional investors into the spot ETFs. These flows could amount to tens of billions of dollars in the coming years.
But what's possibly even more interesting (and what no one talks about) are the secondary streams. These are flows that flow INDIRECTLY from other publicly traded funds into the Spot Bitcoin ETF.
Earlier this week we saw a fund in the United States that had amended its prospectus to allow 15% of the fund's total capital to be invested in a spot Bitcoin ETF after launch.
Considering Bitcoin has been the best-performing asset globally over the past 15 years, a halving is scheduled for April 2024 and the US Federal Reserve will likely begin cutting interest rates in March 2024; Chances are that there are many funds that want to benefit from this.
What does this mean for the Bitcoin price?
It is difficult to give exact numbers when it comes to predicting the price of Bitcoin. After all, the financial market is full of uncertainties. In 2021, almost everyone was convinced that Bitcoin would reach the level of $100,000 per coin, but in the end this did not happen and a terrible bear market followed after the peak of $69,000.
This year MAY be different and we may see a lot of spectacle, but in this world you never know.
According to the Leading indicators (LEI) index of The conference board still a significant risk of recession.
A recession could throw a spanner in the works before 2024. Why? Because then unemployment will skyrocket, uncertainty will increase, companies will get into difficulties and people will prefer to put their capital away.
On the other hand, this could also be an opportunity for people who truly believe in the future of Bitcoin to accumulate even more sats for the years to come.
But overall, things are looking sunny for Bitcoin at the moment.
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