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HomeCrypto NewsMarketBitcoin Price May Never Reach $46,376: Here’s Why

Bitcoin Price May Never Reach $46,376: Here’s Why

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Based on historic precedence from Gold, the Bitcoin (BTC) price may never retest the $46,376 mark, as this marked the listing price for the spot Bitcoin ETF products.

According to insights from Ki Young Ju, the Co-Founder of crypto analytics platform CryptoQuant, this $46,376 mark may be the eternal floor price of Bitcoin moving forward.

He cited the case of Gold. Notably, the precious metal’s price in 2004 was around $444 when the Gold ETF (GLD) made its debut on the New York Stock Exchange (NYSE). Since then, the asset has not retested this price.

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Justification for $46,376 Price Floor

Drawing on insight from May 2021, he noted that several economic factors have impacted the price of Gold since the ETF listing. Young Ju emphasized that beyond the factors, the ETF listing helped attract an inflow of funds from institutions around the globe.

While some disagreed with his thesis, the top analyst posed an analogy to counter the doubts. He asked what would become of Bitcoin if the coin existed before 2009 and its underlying ETF was listed in 2007 and gained recognition as a hedge against inflation.

He highlighted how accessibility created through an ETF is as “important as the M2 money supply,” a factor the critics argue was responsible for Gold’s parabolic surge following its NYSE debut.

Bitcoin’s Parabolic Rally Underway

With Bitcoin trading for $66,964 at the time of writing, it has grown by 44.39% since the 11 spot BTC ETFs got approved by the United States Securities and Exchange Commission (SEC) on January 11. This price level marked a correction from the All-Time High (ATH) of $69,170.63 achieved on March 5.

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The supply crunch from the spot Bitcoin ETF product is already evident, as an average of 10,000 BTC is stacked up by all the issuers compared to the average of 900 BTC produced through mining per day.

Should this trend continue and be further complemented by the upcoming Bitcoin halving event, the supply-demand imbalance might help push BTC to new heights moving forward.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Author

Godfrey Benjamin
Godfrey Benjaminhttps://thecryptobasic.com/
Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web3.0. His love for crypto was birthed when as a former banker, he discovered the obvious advantaged of decentralized money over traditional payments. With his vast experience covering different aspects of Web3, Godfrey's articles has been featured on Blockchain News, Cryptonews Com, and Coingape amongst others. When not writing contents related to crypto, you can find him playing video games.

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