We Asked ChatGPT if Bitcoin’s Price Will Hit $100K in Case the SEC Aproves a Spot BTC ETF
TL;DR
- The approval of a spot Bitcoin ETF by the SEC has been a highly debated topic, and a recent false report claiming approval caused a temporary 10% increase in BTC’s price.
- The likelihood of Bitcoin reaching $100,000 after SEC approval depends on various factors, with institutional demand being a significant consideration. Increased institutional interest could lead to higher demand and drive up the price.
- Other factors, such as the regulatory environment and the timing of Bitcoin’s halving in April or May, also play a role in determining whether BTC reaches the $100,000 mark in case of a spot Bitcoin ETF approval.
The approval of a spot Bitcoin ETF by the United States Securities and Exchange Commission has been a hot topic of discussion for many months, especially after BlackRock – the world’s largest asset manager – also filed an application.
The discussion got even more heated this week after a false report broke out, claiming that a spot Bitcoin ETF has actually been approved by the SEC. BTC’s price immediately increased by some 10% but declined subsequently after the report was proven to be false.
That said, we decided to check with ChatGPT to see what it thinks about whether BTC can hit the coveted $100K in case the SEC does indeed approve a spot Bitcoin ETF.
It’s Not a Yes-or-No Question
ChatGPT said that whether Bitcoin hits $100K after the SEC approves a spot BTC ETF hinges on multiple considerations.
Institutional demand, for once, is amongst the leading criteria.
Approval of a spot Bitcoin ETF could make it easier for institutional investors to gain exposure to Bitcoin. Increased institutional interest might lead to higher demand and potentially drive up the price.
This is a thesis largely supported by Fundstrat’s Head Analyst, Thomas Lee, who said earlier that:
This [bitcoin ETF launch] 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 halving.
It’s Not Just That
And while an approval of a spot Bitcoin ETF would likely cause an uptick in the asset’s price, ChatGPT believes there are other factors to take into account, such as the regulatory environment, for example.
According to the popular AI-based chatbot, regulatory developments beyond the Commission’s decision can also impact Bitcoin’s price. It thinks that clarity, as well as favorable regulations, are capable of boosting confidence. On the flip side, unfavorably regulatory actions may lead to more uncertainty.
It’s also worth mentioning that next year will see Bitcoin’s halving take place in April (or May). This has historically been a particularly bullish event for the price and if it coincides with the approval of a spot Bitcoin ETF, then the chance of BTC’s price hitting $100K would likely be higher.
Meanwhile, if you want to take a look at some of the most interesting Bitcoin price predictions, feel free to check out our recent video on the matter:
The post We Asked ChatGPT if Bitcoin’s Price Will Hit $100K in Case the SEC Aproves a Spot BTC ETF appeared first on CryptoPotato.
