Economists predict Bitcoin will surpass $100,000 this year, following the US regulators’ decision to allow broader trading of the cryptocurrency.
The Securities and Exchange Commission recently approved the first exchange-traded funds (ETFs) on Wall Street that will track Bitcoin, enabling investors to speculate on the price movements of the digital token without directly owning the inherently volatile asset.
This long-anticipated approval is a significant milestone for the most prominent cryptocurrency, with most of these new funds expected to start trading today.
Over the past year, Bitcoin’s value has increased by more than 160%, and following this regulatory approval, it rose by 1.2% to $47,229.50 (£36,999.12).
Geoff Kendrick, the head of digital assets research at Standard Chartered, suggests that this approval, combined with Bitcoin’s ‘halving’ in April – an event that reduces the currency’s supply and has historically triggered price increases – could propel its value to $100,000 (£78,300) by year-end.
Kendrick further speculates that assuming ETF-related inflows occur as anticipated, Bitcoin could potentially reach a level close to $200,000 by the end of 2025.
