{"id":35164,"date":"2024-01-16T20:52:37","date_gmt":"2024-01-17T00:52:37","guid":{"rendered":"https:\/\/cryptocornercafe.com\/cafe\/?p=35164"},"modified":"2024-01-16T20:52:37","modified_gmt":"2024-01-17T00:52:37","slug":"cantor-ceo-makes-gold-and-bitcoin-etfs-comparison-foresees-true-rally-with-halving","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2024\/01\/16\/cantor-ceo-makes-gold-and-bitcoin-etfs-comparison-foresees-true-rally-with-halving\/","title":{"rendered":"Cantor CEO Makes Gold And Bitcoin ETFs Comparison, Foresees True Rally With Halving"},"content":{"rendered":"

In a highly anticipated development, the United States Securities and Exchange Commission (SEC) granted regulatory approval <\/a>for 11 spot Bitcoin ETFs, sparking excitement within the crypto community.\u00a0<\/p>\n

However, despite initial expectations of a significant price surge, the Bitcoin market has experienced an 8% price drop since the ETFs began trading.<\/p>\n

Bitcoin ETFs To Unfold Impact Over Time?\u00a0<\/h2>\n

Drawing a comparison with the launch of the first Gold ETF, Cantor Fitzgerald Asset Management CEO, Howard Lutnick, noted <\/a>that the immediate rush to buy the asset did not materialize.<\/p>\n

Lutnick remarks that historical data from the launch of the Gold ETF, SPDR Gold Shares (GLD), reveals that substantial price appreciation took place over several years.\u00a0<\/p>\n

When GLD was introduced in November 2004, the price of gold stood at around $700. By December 2023, it had surged to an all-time high<\/a> of $2,145. The gold market capitalization, estimated at $1 trillion to $2 trillion pre-ETF approval, ballooned to $16 trillion within a few years.<\/p>\n

Likewise, despite the initial hype surrounding the spot Bitcoin ETFs, experts suggest that the true impact of these ETFs will unfold over an extended period.\u00a0<\/p>\n

As reported <\/a>by NewsBTC, market analysts at CoinShares estimate that the United States possesses around $14.4 trillion in addressable assets.\u00a0<\/p>\n

Assuming a conservative scenario where 10% of these assets invest in a spot Bitcoin ETF with an average allocation of 1%, it could potentially result in approximately $14.4 billion inflows within the first year.<\/p>\n

These significant inflows have the potential to propel the Bitcoin price to new highs and initiate a notable price uptrend. However, as Cantor CEO Howard Lutnick predicted, the halving event, expected to occur in April, remains the primary catalyst for Bitcoin\u2019s growth.<\/p>\n

Dual Catalysts For Crypto Market Enthusiasm<\/h2>\n

As the Bitcoin halving event approaches, analysis of past halvings reveals<\/a> a pattern of substantial rallies leading up to the event, followed by a brief correction and consolidation period before a major bull run<\/a> and peak. The peak typically occurs approximately 18 months after each halving, showcasing a consistent trend.<\/p>\n

The first halving occurred on November 28, 2012, reducing the block reward from 50 BTC to 25 BTC. At the time of the halving, the Bitcoin price was around $13.\u00a0<\/p>\n

However, within a year, it reached a peak of $1,152. Despite a subsequent fall in price to nearly $200 in 2015, critics declared the bursting of a bubble and the demise of Bitcoin. Yet, this trend would repeat in subsequent halving cycles.<\/p>\n

The second halving occurred on July 16, 2016, reducing the block reward to 12.5 BTC. At the time, Bitcoin was valued at $664.\u00a0<\/p>\n

The following year saw a peak of $17,760. Similarly, the third halving occurred on May 11, 2020, lowering the block reward to 6.25 BTC. Bitcoin was priced at $9,734 during the halving and peaked at $69,000<\/a> the following year.<\/p>\n

Based on the historical cycles, it is evident that the upcoming halving scheduled for April 2024<\/a> will be a significant catalyst for Bitcoin. However, it is important to note that Bitcoin ETFs will also play a crucial role.\u00a0<\/p>\n

These ETFs are expected to positively impact the cryptocurrency\u2019s price and bring new inflows and interest to the crypto market.<\/p>\n

Featured image from Shutterstock, chart from TradingView.com\u00a0<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

In a highly anticipated development, the United States Securities and Exchange Commission (SEC) granted regulatory approval <\/a>for 11 spot Bitcoin ETFs, sparking excitement within the crypto community.\u00a0<\/p>\n

However, despite initial expectations of a significant price surge, the Bitcoin market has experienced an 8% price drop since the ETFs began trading.<\/p>\n

Bitcoin ETFs To Unfold Impact Over Time?\u00a0<\/h2>\n

Drawing a comparison with the launch of the first Gold ETF, Cantor Fitzgerald Asset Management CEO, Howard Lutnick, noted <\/a>that the immediate rush to buy the asset did not materialize.<\/p>\n

Lutnick remarks that historical data from the launch of the Gold ETF, SPDR Gold Shares (GLD), reveals that substantial price appreciation took place over several years.\u00a0<\/p>\n

When GLD was introduced in November 2004, the price of gold stood at around $700. By December 2023, it had surged to an all-time high<\/a> of $2,145. The gold market capitalization, estimated at $1 trillion to $2 trillion pre-ETF approval, ballooned to $16 trillion within a few years.<\/p>\n

Likewise, despite the initial hype surrounding the spot Bitcoin ETFs, experts suggest that the true impact of these ETFs will unfold over an extended period.\u00a0<\/p>\n

As reported <\/a>by NewsBTC, market analysts at CoinShares estimate that the United States possesses around $14.4 trillion in addressable assets.\u00a0<\/p>\n

Assuming a conservative scenario where 10% of these assets invest in a spot Bitcoin ETF with an average allocation of 1%, it could potentially result in approximately $14.4 billion inflows within the first year.<\/p>\n

These significant inflows have the potential to propel the Bitcoin price to new highs and initiate a notable price uptrend. However, as Cantor CEO Howard Lutnick predicted, the halving event, expected to occur in April, remains the primary catalyst for Bitcoin\u2019s growth.<\/p>\n

Dual Catalysts For Crypto Market Enthusiasm<\/h2>\n

As the Bitcoin halving event approaches, analysis of past halvings reveals<\/a> a pattern of substantial rallies leading up to the event, followed by a brief correction and consolidation period before a major bull run<\/a> and peak. The peak typically occurs approximately 18 months after each halving, showcasing a consistent trend.<\/p>\n

The first halving occurred on November 28, 2012, reducing the block reward from 50 BTC to 25 BTC. At the time of the halving, the Bitcoin price was around $13.\u00a0<\/p>\n

However, within a year, it reached a peak of $1,152. Despite a subsequent fall in price to nearly $200 in 2015, critics declared the bursting of a bubble and the demise of Bitcoin. Yet, this trend would repeat in subsequent halving cycles.<\/p>\n

The second halving occurred on July 16, 2016, reducing the block reward to 12.5 BTC. At the time, Bitcoin was valued at $664.\u00a0<\/p>\n

The following year saw a peak of $17,760. Similarly, the third halving occurred on May 11, 2020, lowering the block reward to 6.25 BTC. Bitcoin was priced at $9,734 during the halving and peaked at $69,000<\/a> the following year.<\/p>\n

Based on the historical cycles, it is evident that the upcoming halving scheduled for April 2024<\/a> will be a significant catalyst for Bitcoin. However, it is important to note that Bitcoin ETFs will also play a crucial role.\u00a0<\/p>\n

These ETFs are expected to positively impact the cryptocurrency\u2019s price and bring new inflows and interest to the crypto market.<\/p>\n

Featured image from Shutterstock, chart from TradingView.com\u00a0<\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-35164","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/35164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=35164"}],"version-history":[{"count":1,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/35164\/revisions"}],"predecessor-version":[{"id":35173,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/35164\/revisions\/35173"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=35164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=35164"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=35164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}