One of the factors that align with the ‘perfect storm’ is the upcoming Bitcoin halving event expected to occur in April 2024.
According to a tweet on X by John Deaton, a prominent crypto lawyer actively representing XRP holders in the ongoing SEC case, US regulators may finally approve Bitcoin exchange-traded funds (ETFs) very soon. This potential regulatory shift coincides with significant macroeconomic developments that have the potential to trigger a significant Bitcoin price surge. After the approval, the lawyer sees a possibility of BTC’s price reaching $220,000.
In response to a tweet by Bloomberg journalist Lisa Abramowicz, who believes that expectations for Fed interest rate cuts are growing amid a weakening economy, the crypto lawyer stated that the Federal Reserve’s expansionary monetary policies could provide tailwinds for Bitcoin in the coming months. Abramowicz points out that the Fed’s hands were tied on rate cuts just six months ago due to high inflation. However, the central bank now has the ability to lower interest rates to support growth. As seen in the past, rate cuts frequently coincide with increased market liquidity, benefiting risky assets such as Bitcoin.
Although I believe a Spot #BTC ETF should’ve been approved long ago, I believe the timing of a spot ETF approval is going to help create a perfect storm for #Bitcoin
What Wall Street wants, Wall Street usually gets. And guess what Wall Street wants from the Fed?
We all know… https://t.co/A8x3sBuqXT
— John E Deaton (@JohnEDeaton1) November 7, 2023
The Confluence of Bullish Factors: A ‘Perfect Storm’ Scenario
Deaton said he believes that spot ETF licenses should have been granted, but since it has been delayed so far, the timing also favors Bitcoin in many ways, creating a ‘perfect storm’ scenario for the price to reach $220,000.
One of his arguments is that the approval timing aligns with these expectations on major changes in Fed policies. He believes that the Fed will cut rates in the not-too-distant future, which may also align with the period that about 10 spot ETF approvals would have been made, significantly expanding access to Bitcoin for retail and institutional investors alike. This will pump a lot of money into the BTC market, with many experts predicting that there could be $200 to $300 billion worth of fresh buying pressure. This influx of new capital and liquidity could act as rocket fuel for Bitcoin’s price.
Another factor that aligns with the ‘perfect storm’ is the upcoming Bitcoin halving event expected to occur in April 2024. The halving occurs every four years to cut the reward from BTC mining in half. The first reward slashing happened in 2013, while the last is estimated to occur in 2140 when there is no more Bitcoin to mine. The next halving will take place in April 2024, cutting the BTC mining rewards from 6.25 to 3.125 coins. This event will automatically reduce the crypto’s supply in the market, and demand for the coin is likely to grow as more retail and institutional investors are expected to want to get involved.
Putting it all together, Deaton sees Bitcoin potentially hitting $220,000 within 18 months of US ETF approval. This aligns with projections from Max Keiser, a popular BTC commentator. While ambitious, the confluence of macroeconomic tailwinds, regulatory changes, and the coin’s programmed supply changes makes the lawyer’s outlook plausible.
Temitope is a writer with more than four years of experience writing across various niches. He has a special interest in the fintech and blockchain spaces and enjoy writing articles in those areas. He holds bachelor’s and master’s degrees in linguistics. When not writing, he trades forex and plays video games.
