Bitcoin ETF ‘FOMO Rally’: Bitcoin is becoming very popular again because of the new Bitcoin ETFs that everyone was excited about. People are now wondering how much higher its price can go.
No one knows for sure, but that doesn’t stop experts from guessing. This includes people at AllianceBernstein, a big company worth $725 billion. They think Bitcoin might reach its highest price ever this year.
“Analysts Gautam Chhugani and Mahika Sapra believe that Bitcoin’s best times are yet to come. They think the market for Bitcoin, especially with ETFs (Exchange-Traded Funds), is getting ready for a big surge because people will be afraid of missing out. They shared these thoughts in a message to their clients on Monday.”
The analysts from AllianceBernstein noted that once the new ETFs were approved, their impact was immediately reflected in the market prices. However, the market hasn’t yet considered how much money will flow into these ETFs or the upcoming shortage of Bitcoin supply due to the Bitcoin halving event.
The halving is a programmed event in Bitcoin that happens about every four years to control how fast new bitcoins are made. This helps prevent too many bitcoins from being created. Although there will only be 21 million bitcoins ever made, the halving reduces the number of new bitcoins miners get for verifying transactions on the Bitcoin network by half. This slows down the introduction of new bitcoins into the market.
Analysts think that because more people want Bitcoin and there might be less of it available, investors might start buying Bitcoin because they are afraid of missing out on making money.
The experts say that a lot of the money going into the new ETFs comes from individual investors, especially those who are big fans of Bitcoin. They have managed to add it to their trading accounts. However, the experts also mention that the interest from these investors is still much lower than it was during the big increases in 2017 and 2021. But, they think that more money might still come from these investors.
The analysts say that even though some people are still not ready to invest, another group is interested in learning about Bitcoin. They believe these new fans of Bitcoin will start investing soon.
In simple terms, since the government allowed ten special investment funds (spot ETFs) to start, they have done very well. Out of these, three companies—BlackRock, Fidelity, and Ark Invest’s 21Shares—have each gathered over $1 billion. BlackRock and Fidelity have about $3 billion each.
Bitcoin’s value has been going up because more people are interested in certain investment funds (ETFs), increasing by 8.5% since the year began. However, its price dropped when money started leaving Grayscale, a company that changed its investment format, but this movement of money has decreased. Earlier this week, Bitcoin’s price went over $50,000 but then dropped again.
The price of Bitcoin is right now a little over $49,000.
Disclaimer: The information on this website isn’t meant to be taken as advice for investing money. Investing involves uncertainty, and there’s a chance you could lose your money when you invest.
