Adam Back, Blockstream CEO, Discusses the Influence of Bitcoin ETF and Halving on BTC Price
Adam Back, the CEO of Blockstream and a pioneer in the field of cryptocurrencies, believes that the future of Bitcoin's price is closely tied to the upcoming halving event and the potential approval of a Bitcoin exchange-traded fund (ETF). In an interview with Cointelegraph, Back explains that despite the recent drop in value, Bitcoin is trailing below the historical price trend line of previous halvings, indicating a potential resurgence in 2024.
The Impact of Recent Events on Bitcoin's Price
Back attributes the drop in Bitcoin's price over the past few years to a combination of factors, including the COVID-19 pandemic, inflation, and regional conflicts. These events have affected not only the cryptocurrency market but also conventional financial markets. Investment managers, in particular, have had to sell more liquid assets to manage risk and losses, including Bitcoin. However, with many of these macro events winding down and industry-specific failures being resolved, Bitcoin's price has recently experienced a surge.
Bitcoin's Potential Upside in 2024
Back predicts that Bitcoin could reach $100,000 in the next market cycle, pointing to the "stock-to-flow" model created by PlanB as a reference point. He believes that if not for the factors mentioned earlier, Bitcoin would have already reached this mark. The recent price surge, with Bitcoin hitting $44,000 multiple times in December 2023, suggests that his prediction might not be far-fetched.
The Influence of Bitcoin ETF
Back highlights the potential impact of a Bitcoin ETF on the price of Bitcoin. He explains that traditional market segments, including major fund managers like BlackRock and Fidelity, are currently unable to invest directly in assets like Bitcoin due to regulatory restrictions. However, a spot Bitcoin ETF would open up access to Bitcoin exposure for these funds, driving major capital inflows into the cryptocurrency space. Back emphasizes that the ETF shouldn't be undervalued in terms of its influence on Bitcoin's price.
Overall, Back's insights suggest that the future of Bitcoin's price is intertwined with upcoming events such as the halving and the potential approval of a Bitcoin ETF. With these factors in play, Bitcoin could see a resurgence in 2024 and potentially reach new price milestones.
