How high the price of Bitcoin could rise in the next 12 months – analyst Michaël van de Poppe predicts
The approval of 11 spot Bitcoin exchange-traded funds (ETFs) in the U.S. sets the stage for billions of dollars to flow into cryptocurrency markets and improve liquidity. Despite a slight decline on Saturday, Bitcoin remains strong.
Will Bitcoin soon reach $300,000?
In a recent X post, seasoned cryptocurrency analyst Michaël van de Poppe examines the profound impact of approved Spot ETFs. Analysts interpret the ETF’s approval as a transformational event, similar to milestones in the cryptocurrency’s 15-year history. He expects Bitcoin to reach $300,000 in the ongoing cycle, emphasizing a gradual impact over months to years.
Van de Poppe also parallels the current market cycle with the 2013-2017 cycle, placing the current phase as similar to January-March 2016. According to analysts, for Bitcoin, there is a consolidation period of 3-6 months before witnessing new highs. He also predicts an altcoin rally during this period, providing investors with alternative opportunities while Bitcoin is consolidating.
He highlights how important institutional participation is, seeing significant net inflows of over $600 million on the ETF’s first day. He recognizes these institutional steps as a precursor to retail participation and advises a strategic focus on altcoins during the expected Bitcoin consolidation period.
He also believes that Wall Street could soon see massive inflows of money, ranging from $2 trillion to $4 trillion, that could push Bitcoin’s value to $130,000 to $250,000. The impact on market capitalization is significant, and the lower the supply availability, the greater the impact.
There will also be a short-term cooling off period for Bitcoin, citing factors such as the Grayscale Bitcoin Trust’s cyclical and institutional compliance measures. Van de Poppe recommends a simple strategy to investors. That means buying dips and remaining cautious during market corrections, especially if Bitcoin experiences a correction of 20% or more.
Current Market Scenario
Altcoins are set to thrive over the next few quarters as Bitcoin prepares for a significant rally and injects much-needed liquidity into the market. Bitcoin’s dominance is expected to continue to decline and could fall below 30% within the next two years. The growing popularity of layer 1 blockchains supporting smart contracts and web3 protocols is attracting more investors to the cryptocurrency space.