Nic Carter, co-founder of Coin Metrics and partner at Castle Island Ventures, shared his insights on when Bitcoin might experience its next big surge. During a recent interview with Bloomberg Television, Carter expressed his belief that Bitcoin’s price could soar in the months following the potential approval of spot Bitcoin exchange-traded funds (ETFs) in the United States.
Carter noted that although the market has given up some gains recently, possibly due to year-end tax selling, the fundamental dynamics are about balancing expectations with actual catalysts. He highlighted that the recent rally in Bitcoin’s price, moving from the lower $30,000s to the mid $40,000s, is largely due to anticipation of these ETFs. While he expects a slight increase in price upon the ETF approval, the real excitement, according to Carter, lies in the medium term. This is when financial entities, like registered investment advisors, could start recommending Bitcoin to their clients more freely, thanks to the ETFs.
The marketing push from major ETF sponsors, backed by some of the world’s largest financial institutions, is what Carter believes will truly ignite Bitcoin’s price. He anticipates this significant growth phase to start and continue throughout 2024.
Carter also mentioned the expected approval date of spot BTC ETFs as January 8th, stressing that their impact on Bitcoin’s value could overshadow the effect of the April 2024 Bitcoin halving event. The halving, which cuts miners’ rewards in half and reduces new Bitcoin supply, is seen by Carter as a less significant event compared to the introduction of ETFs. He believes that the ETFs will open up new avenues of capital that have previously been unable to invest in Bitcoin, leading to positive structural flows for the cryptocurrency.
At the time of the interview, Bitcoin was trading at $42,559, showing a slight decrease of nearly 2% over the last 24 hours.