Bitcoin Could Hit $42K if BlackRock Bitcoin ETF is Approved: Matrixport Report

The anticipation of the approval of the BlackRock Bitcoin ETF has sent ripples of excitement through the cryptocurrency market. According to a Matrixport research report, the potential approval of this ETF could have a seismic impact on Bitcoin’s price, potentially catapulting it to either $42,000 (as a conservative estimate) or a staggering $56,000 if an influx of $50 billion enters the market.

The crypto community has been buzzing with anticipation about the BlackRock Bitcoin ETF. Recent reports from Wu Blockchain, referencing Matrixport’s research, have outlined the astounding potential for Bitcoin’s value if this ETF receives the green light from regulators.

The Matrixport research pointed out that if the BlackRock Bitcoin ETF is approved, a conservative estimate is that the price of Bitcoin will rise to $42,000; an optimistic estimate is that with an inflow of $50 billion money, Bitcoin may rise to $56,000. https://t.co/Fr1zL6vHzO

— Wu Blockchain (@WuBlockchain) October 19, 2023

Currently trading at approximately $28,333, Bitcoin’s price is at a crucial juncture, and the charts reveal some intriguing patterns. 

Immediate resistance levels are identified at $28,652, with more critical levels at $29,100, $29,520, and $30,600. These indicators align with the research’s bold projections, potentially paving the way for a substantial Bitcoin value shift.

So, what is fueling this optimism regarding the BlackRock Bitcoin ETF? 

The answer lies in anticipating an enormous influx of capital into the Bitcoin market. Matrixport’s research report speculates that, within the first year of the ETF’s existence, a colossal $300 billion could surge into Bitcoin.

This optimistic outlook is supported by several factors. The fact that the U.S. Securities and Exchange Commission (SEC) has yet to raise objections to the success of Grayscale’s Bitcoin Trust (GBTC) further bolsters confidence in the potential success of Bitcoin Spot ETFs.

The Potential $30 Billion Waiting for ETF Approval

Matrixport’s ‘Matrix onTarget‘ report for 2023 is nothing short of exciting for cryptocurrency enthusiasts. This bold forecast is underpinned by lower U.S. inflation and a favorable economic environment. The report envisions a strong comeback for Bitcoin and Ethereum and a smoother ride in the crypto world.

Let’s focus on the show’s star, Grayscale Investments’ Bitcoin Trust (GBTC). 

It has experienced remarkable growth this year, outperforming Bitcoin itself with a 167% increase compared to Bitcoin’s 71%. 

GBTC started the year at a -45 % net asset value (NAV) discount, which has since improved to -43%. However, the real game-changer arrived in June 2023 when BlackRock revealed its application for a Bitcoin ETF.

Matrixport’s research delved into a group of 15,000 U.S. registered investor advisors (RIA) who manage a colossal $5 trillion in assets. These advisors have the potential to be the game-changers in this scenario. 

If just 1% of these advisors recommend allocating funds to Bitcoin, we could witness a significant influx of $50 billion into the market. To put this into perspective, precious metals ETFs have a combined worth of approximately $120 billion. 

Even if 10-20 % of these investors shift their investments to a Bitcoin ETF, we may witness an astounding $12-24 billion flowing into the Bitcoin market. This is the transformative potential of ETFs.

The SEC’s recent discussions with ETF issuers have further brightened the outlook for Bitcoin enthusiasts. All these factors combined paint a bullish picture of Bitcoin’s future. 

The Path to $42K – $56K

Let’s explore the tantalizing question: What happens if BlackRock’s Bitcoin ETF receives the regulatory green light? 

If Tether’s market capitalization increases by $24 billion, offering a glimpse of what’s possible, Bitcoin could climb to the $42,000 mark – the conservative estimate. 

However, the excitement continues. With $50 billion of new capital flowing into Bitcoin, thanks to a 1% allocation from these RIAs, we could witness a remarkable surge, pushing Bitcoin’s price to an impressive $56,000.

The potential approval of the BlackRock Bitcoin ETF could be a game-changer for the entire crypto market, and investors are undoubtedly on the edge of their seats, eager to see how this exciting chapter unfolds.

The recent misinformation and fake news surrounding Blackrock’s ETF approval surged Bitcoin price to an unexpected uptrend. This is evidence of how badly the crypto market is waiting for it.