$1.5 Trillion ETF Prediction Has ‘Snowball Effect’ on XRP: Forbes

Forbes has argued a $1.5 trillion projection on the Bitcoin market led to a rally exerting a positive influence on XRP.

In a recent report, Forbes senior contributor Billy Bambrough highlighted the sudden resurgence of Bitcoin following a flash crash. Recall that Bitcoin experienced a significant and abrupt decline three days ago, plummeting to a level of just $500 above $40,000.

XRP similarly crashed from $0.6266 to $0.5393. Meanwhile, Bitcoin has since rebounded to above $44,000, with XRP also closing in on the $0.6 threshold.

Revival Attributed to $1.5 Trillion Bitcoin Forcast

Bambrough attributed the swift revival to the growing excitement surrounding the possibility of a Bitcoin spot ETF approval by the  U.S. SEC. 

Moreover, the Forbes senior contributor argued the sudden upsurge in Bitcoin’s value coincided with a bold Bitcoin price prediction from analysts at AllianceBernstein. The experts foresee a potential rise that could propel the Bitcoin market capitalization to $1.5 trillion by the end of 2024.

Precisely, AllianceBernstein analyst Mahika Sapra and researcher Gautam Chhugani anticipate 2024 to be a year for a substantial breakout. They expect that the price of Bitcoin will surge to $80,000 within the next 12 months.

Bitcoin ETF’s Domino Effect

Furthermore, the AllianceBernstein analysts suggest that the build-up of Bitcoin ETF flows may be gradual. They predict applicants will fiercely compete to take the lead in the significant asset accumulation game. 

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The Forbes report underscored the domino effect expected in the crypto market due to the Bitcoin ETF demand. A projected snowball effect following the scenario will likely extend to other cryptocurrencies, like XRP, boosting their values.

Moreover, the AllianceBernstein analyst outlined their expectations. They stated that in the event of approval, Bitcoin ETFs will experience approximately $5 billion in inflows during the first half of 2024. 

They expect around $10 billion in the second half. Besides, the experts predicted that by 2028, about 10% of Bitcoin could be held within ETFs.

Meanwhile, the analysts highlighted the possibility of a “fairly brief and shallow selloff” in the short term following the approval.

Yet, they pointed out additional factors supporting the Bitcoin price. These factors include the impending April 2024 halving and growing demand from companies following the example of MicroStrategy.

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• Source: https://thecryptobasic.com/2024/01/07/1-5-trillion-etf-prediction-has-snowball-effect-on-xrp-forbes/?utm_source=rss&utm_medium=rss&utm_campaign=1-5-trillion-etf-prediction-has-snowball-effect-on-xrp-forbes