The long-awaited spot Bitcoin ETF approval in the U.S. was granted on January 10, but it failed to meet investors’ expectations as the largest cryptocurrency lost momentum, dropping below the $40,000 threshold. Attention is now focused on Bitcoin’s block reward halving, with Ethereum potentially benefiting the most from this event.
Bitcoin’s block reward halving, occurring approximately every four years, reduces the BTC reward for miners by 50%. This event, known as halving, cuts the rate at which new BTCs are introduced, potentially increasing the cryptocurrency’s price if demand remains constant or rises. A rise in Bitcoin’s price is known to potentially trigger a surge in the entire crypto market, particularly benefiting Ethereum.
ARK Invest CEO Cathie Wood, known for her optimistic views on cryptocurrencies, especially Ethereum, highlights Ethereum’s growing importance in Decentralized Finance (DeFi) and NFTs, and its capacity to meet unmet yield demands in financial markets.
ARK Invest’s “Big Ideas” presentation includes bullish predictions for Bitcoin and Ethereum, with scenarios for Bitcoin reaching up to $1.48 million by 2023 and Ethereum potentially exceeding a market value of $20 trillion by 2032, which could translate to an ETH price over $166,000.
Investment management firm VanEck also forecasts a positive future for Ethereum, with a bullish scenario suggesting a price rise to $51,006 by 2030, a 31-fold increase from current levels. The SEC’s recent approval of spot Bitcoin ETFs marks a significant milestone for the crypto industry, and a similar approval for Ethereum ETFs by May 23, 2024, could lead to a significant surge in ETH’s value.