In a recently published note, investment research firm Fundstrat has recently made a staggering Bitcoin ($BTC) price prediction, suggesting the cryptocurrency could see a leap of over 500% from its current value to reach the $180,000 mark ahead of its upcoming halving in April 2024.

As Markets Insider reported, Fundstrat indicated that while daily demand for the flagship cryptocurrency is currently at approximately $25 million, equaling the current daily rewards from mining, this equation might experience a major shakeup with the potential launch of a spot Bitcoin Exchange-Traded Fund (ETF).

A spot Bitcoin ETF, the note suggests, could bring in $100 million in incremental daily demand for the cryptocurrency, which combined with the April 2024 halving event, which will cut mining rewards in half to $12 million a day, would necessitate a substantial surge in the price of bitcoin to balance the market equilibrium between buyers and sellers.

The note added:

[The Bitcoin ETF] would bring daily demand to $125 million, while daily supply is only $25 million. The implied equilibrium price would need to rise so daily supply matches daily demand. Equilibrium analysis suggests that a clearing price is $140,000 to $180,000, before the April 2024 halvening.

Bitcoin’s halving has historically been a bullish event for the cryptocurrency, whose price has surged months after each of the halvings it already underwent. Earlier this month, Sean Farrell, Fundstrat’s Head of Digital Asset Strategy, noted to clients that a multiplier effect in the ballpark of 4.0x to 5.0x is a reasonable projection for the Bitcoin network.

Per his words, this translates into a scenario where “$1 of demand could yield a $4 to $5 augmentation in market cap.” In the same report, Farrell assigned a 75% probability to the approval of a spot Bitcoin ETF in the near future, as a multitude of firms, inclusive of BlackRock and Fidelity, have filed to list such a product.

Fundstrat suggested that if approved, a spot Bitcoin ETF from the world’s largest asset manager BlackRock could become one of the biggest to ever launch, potentially eclipsing the current record holder, Invesco’s QQQ ETF. QQQ attracted $36 billion in inflows in its first year following its launch in March 1999, and tracks the Nasdaq 100.

Fundstrat went on to say that Bitcoin ETFs could ultimately dwarf the precious metals ETF market, which currently holds approximately $230 billion in assets ,and projected that the Bitcoin ETF could turn into a category worth over $300 billion

As CryptoGlobe reported, earlier London-based multinational banking and financial services firm Standard Chartered has suggested that the price of the flagship cryptocurrency could surge to $50,000 this year, and could breach the $120,000 by 2024’s close in another major bullish price prediction for BTC.

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