Cryptocurrency experts name the condition under which bitcoin will grow by 74%

Charles Yu, an employee of Galaxy Digital, predicted that the spot market for bitcoin ETFs will reach a market capitalization of $ 14.4 trillion in the first year after launch. According to the analyst, this would represent a 74% increase in the value of the first cryptocurrency from the price recorded on September 30, 2023, when bitcoin was trading at around $ 27,000.

The expert suggested that in the first month after the approval of applications for ETFs, bitcoin will grow by 6.2%, but the yield will gradually decline and reach 3.7% at the end of the year.

Yu also added that in two years after the approval of applications, the bitcoin fund market will reach $ 26 billion, and in three years — $ 39 billion. The expert noted that these estimates are «conservative» and do not take into account «second-order effects.

«The inflow of funds into ETFs, rumors in the market about an upcoming halving in April 2024, and the likelihood that interest rates have peaked suggest that 2024 could be a big year for bitcoin,» Yu concluded.

At the time of writing, the main cryptocurrency is trading at $ 34,336 with a market capitalization of $ 670.67 billion. Traders made daily trading deals worth $ 23.6 billion. Bitcoin’s dominance in the market amounted to 52.9%.

Earlier, cryptocurrency analysts at Matrixport claimed that the crypto industry could receive from $ 24 billion to $ 50 billion if BlackRock’s spot bitcoin ETF is approved.