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The first cryptocurrency has risen 30% in the last month, coming close to the $59,000 per BTC level. There are 2 reasons contributing to this move. The day before yesterday we told about one of them. Today the second one is on the line.
BTC
Many of us have probably heard that BTC is rising in value amid talk of the approval of the first cryptocurrency ETF by the US Securities and Exchange Commission (SEC). The latter has refused for 3 years to allow at least a dozen different companies to launch ETFs.
Apparently the situation has now changed. This is evidenced by 2 factors. First, SEC Chairman Gary Gensler announced that it is possible that an ETF will be allowed to launch, based on bitcoin futures already traded on the Chicago Exchange in the US.
And the second factor is the rapid growth of BTC. Apparently, insiders are buying the first cryptocurrency in huge volumes, as they know about the approval of a bitcoin ETF launch in the near future.
Why is this so important for the market? The fact is that a huge number of potential investors in the first cryptocurrency are still standing on the sidelines. They are simply not ready to put money into cryptocurrency exchanges. Or to open cryptocurrency wallets. These are huge risks. An exchange can be hacked by hackers. And the cryptocurrency wallet could be zeroed out through phishing or its password could be lost.
The launch of ETFs removes these risks. Investors will be able to buy “paper bitcoin” the same way they buy “paper gold” or ETFs on stocks. And that’s hundreds of millions of investors around the world.
What’s more! For many, the following strategy becomes available. When once a month from each paycheck, a portion of the money is put into a specific ETF, such as SPY. The strategy is extremely popular. It ranks first in terms of simplicity and the path to financial independence.
Now let’s imagine what would happen if 10 million investors started buying $100 or $1000 ETFs once a month. That’s $1 billion or $10 billion. And so every month, year after year. The numbers are simply astronomical. In such a scenario, a price of $1 million for 1 BTC in 20 years doesn’t seem too high anymore.
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