Michael Saylor, who started MicroStrategy and is a big fan of Bitcoin, thinks that if a Bitcoin ETF gets approved in January 2024, it could cause a huge demand for Bitcoin.
He says people shouldn't underestimate how much this ETF could change things. Saylor said that if the U.S. Securities and Exchange Commission (SEC) approves the ETF, it could be the most important thing to happen on Wall Street in 30 years.
He thinks this approval could make Bitcoin prices go up a lot in 2024, kind of like when the stock market introduced S&P 500 index funds.
Michael Saylor believes that if the US SEC approves a spot ETF for Bitcoin, it could cause a surge in demand for BTC. He also thinks that the upcoming Bitcoin Halving in 2024 might reduce its supply, making it more valuable.
Right now, Bitcoin's price is about 13% higher than it was a month ago. But as we approach the SEC's January 10, 2024, deadline, it's uncertain how much the price might swing.
Some experts think there's a 98% chance the ETF will get approved before the deadline. Companies like Blackrock are having frequent meetings with SEC officials, which suggests positive momentum toward approval.
MicroStrategy, the largest institutional holder of Bitcoin, might continue buying more of the cryptocurrency due to positive market sentiment. They recently bought $5.3 million worth of Bitcoin on November 2, 2023, when its price was around $34,000. The company started accumulating Bitcoin in August 2020 and currently holds a total of 158,400 Bitcoin.
In parallel, US SEC officials have met with spot ETF applicants about 24 times, hinting at a possible approval before the January 10 deadline.How would the approval of Bitcoin ETFs by the SEC potentially affect Altcoins
Initially, a Bitcoin ETF approval might attract more mainstream attention to the overall cryptocurrency market. This heightened interest could lead to increased investment not only in Bitcoin but also in other cryptocurrencies, including altcoins.
Historically, Bitcoin's dominance in the market tends to increase when major events or developments occur. This could lead to a temporary decrease in the relative value and attention given to altcoins as investors might focus more on Bitcoin.
Over time, as the cryptocurrency market matures, investors might diversify their portfolios beyond Bitcoin. This could positively impact altcoins as investors seek higher potential returns in other cryptocurrencies.
The approval of a Bitcoin ETF might trigger short-term volatility in both Bitcoin and altcoins. Speculative trading patterns could emerge, causing rapid price fluctuations across the market.
Also Read: BlackRock Met SEC to Discuss their Bitcoin ETF Application
