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Investing.com – Gold soared to a 17-month high above $35,000 earlier this week, driven by optimism over the likely approval of a spot ETF and a flight to stocks shelters.
However, according to Stephan Livera of Swan Bitcoin, the crypto’s rally this week is only the beginning of an upward movement that will prove much more significant, suggesting a target around $500,000.
He indeed estimated in an interview with Kitco that the approval of a Bitcoin ETF will have a significant impact on the price of BTC. However, as more investors believe that approval is imminent, Livera said it could come later than many think.
“Although many experts predict that [l’ETF Bitcoin au comptant] will happen in three to six months, I don’t believe it will happen this year. Next year is the most likely scenario… in the first or second quarter of 2024, which would coincide with the next halving, which should take place in April,” he said.
Note that the “halving” of bitcoin is an event that occurs every four years and which marks the halving of the reward that miners receive, which is equivalent to a reduction in the rate of growth of the supply.
“Historically, what we’ve seen around the halving is a slight rise before the halving, and then a slight decline afterwards. Six to 12 months later, that’s when the real bull cycle occurs, and the price of bitcoin is then multiplied by 10 or 20,” explained Mr. Livera.
He thus predicted a massive rally for the end of 2024 which would see “violent upward movements”, peaking at around $500,000 in 2025 or early 2026, before posting a violent correction.
“It’s entirely possible that bitcoin could move closer to the . a drop of 80%”, towards $100,000, Livera predicted.