Analysts at crypto research firm K33, formerly Arcane Research, have made a bold prediction, claiming that the probable approval of a spot Bitcoin ETF at $25,816 might have a far more significant impact on crypto prices than the market currently realizes.
K33’s senior analyst, Vetle Lunde, and vice president, Anders Helseth, noted in a market study released on September 5th that the recent three months had significantly boosted the possibility of a spot Bitcoin ETF approval. However, they believe that the price of Bitcoin and other major cryptocurrencies still needs to represent this favorable mood properly.
According to the analysts, while Bitcoin has recently retraced some of its gains following Grayscale’s legal victory over the Securities and Exchange Commission, approving a spot ETF would likely result in “enormous inflows” and a significant increase in buying pressure for Bitcoin.
Interestingly, Lunde and Helseth stressed that the downside of a prospective spot ETF rejection would be “negligible,” with Bitcoin prices projected to continue on their current path.
Furthermore, the experts indicated an increased possibility of spot ETF approvals, with some Bloomberg analysts predicting a 75% chance of support this year. They contended that the market’s perception of ETFs needs to be revised.
“I firmly believe the market is wrong,” Lunde stated. By all indications, this is a buyer’s market, and it would be foolish not to accumulate BTC at current levels aggressively.”
The analysts cited the recent 2% gain in the tech-heavy Nasdaq-100 index, typically a barometer of the broader market’s risk appetite, to back up their optimistic predictions.
In addition to their Bitcoin research, Lunde and Helseth expressed excitement about the current price of Ether, which is $1,638. They anticipate that ETH will outperform Bitcoin in the next two months, owing to solid momentum ahead of the launch of a futures-based ETF.
Analysts highlighted that Bitcoin gained roughly 60% in the weeks preceding the introduction of the first Bitcoin futures-based ETF on October 19, 2021, drawing a similarity to Bitcoin’s previous performance. They foresee a similar pattern for Ether since the decision on a futures-based Ether ETF is likely in mid-October, with reports indicating that it will be approved by the SEC.
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