- Bitcoin just bagged a $1 million price target from Raoul Pal by 2025.
- Bitcoin spot ETF expectation remains a key driver fueling this bullish estimate.
Former Goldman Sachs executive Raoul Pal has made headlines with his prediction that Bitcoin (BTC), the world’s leading cryptocurrency could reach a staggering $1 million by 2025.
Pal, who regularly shares his insights with his 22,000 subscribers on YouTube, believes that the current crypto bull market has just begun, and the potential for gains in the coming years is substantial.
Pal Analyzes BTC’s Bullish Projections
Pal supports his prediction by referring to the long-term chart of Bitcoin since 2013. While acknowledging the early cycles’ volatility, he highlighted the overall trend as a perfect logarithmic one.
According to his analysis, the current bull market cycle resembles the 2016-2017 era, driven by a massive influx of liquidity that sent digital assets soaring. Pal posited that the current cycle is in its infancy, drawing parallels with the earlier cycle that led to substantial growth.
Bitcoin’s current trading price of $42,586 reflects a 1.08% decline in the past 24 hours, but the market cap remains robust at $835.9 billion. The digital currency boasts a trading volume of $24.4 billion at the time of writing. Analysts and investors widely agree that Bitcoin’s potential price surge could surpass $100,000 by the end of 2024.
The collapse of certain U.S. lenders, such as Silicon Valley Bank (SVB) earlier this year, has strengthened the case for Bitcoin as a decentralized and scarce digital asset. The endorsement by influential figures like Michael Saylor, whose firm, MicroStrategy recently acquired an additional 14,620 BTC worth approximately $615.7 million, further solidifies Bitcoin’s role as a strategic part of corporate cash reserves.
While projections carry inherent uncertainties, the overall sentiment in the crypto space is optimistic. Many market stakeholders await regulatory decisions and market movements that could shape the future of Bitcoin in the coming years
Spot Bitcoin ETFs and Market Impact
The potential approval of spot Bitcoin ETFs is a key factor in the coin’s bullish projections. Like many market experts, Michael Saylor believes that the potential spot Bitcoin ETF approval in January could trigger the much-awaited bull surge.
A recent report by Crypto News Flash, suggests that if spot Bitcoin ETFs receive regulatory approval, an estimated $155 billion could flow into the market, increasing Bitcoin’s market capitalization and the asset’s price.
Markedly, the Grayscale Bitcoin Trust (GBTC), currently the world’s largest crypto fund, manages over 620,000 BTC holdings. The expected capital inflow from spot ETFs could surpass the funds that flowed into GBTC during the previous bull market cycle, marking a key milestone in the evolution of crypto investment instruments.
Moreover, Tom Lee, Head of Research and CNBC contributor, anticipates a massive impact on Bitcoin’s demand-supply dynamics if spot Bitcoin ETFs are approved. According to Lee, the demand could far exceed the supply, potentially driving the price between $150,000 to $180,000 by the end of next year.
While regulatory uncertainties persist in the U.S., Europe has already taken the lead in approving and launching the first spot Bitcoin ETF. Tom Lee suggests that even if the SEC rejects ETF applications, the decline in supply against rising demand could still lead to a price surge, though perhaps BTC may not reach the six-figure range.
