John Deaton, the attorney representing XRP holders, recently raised a thought-provoking query to his substantial following of over 276,300 Twitter users concerning the value of Bitcoin.
Deaton inquired whether his followers believed that the market capitalization of Bitcoin might someday reach half of that of Gold. He pointed out that if this hypothetical scenario were to materialize, the value of Bitcoin could potentially surge to $300,000, almost ten times higher than its current worth.
As of the time of writing, the value of a single Bitcoin stood at $30,672. The founder of CryptoLaw mentioned that he opted for the prediction that Bitcoin may achieve fifty percent of Gold’s market capitalization owing to his conviction that the current price presents an appealing opportunity for long-term investors.
In addition, he stated that the reversal of Larry Fink, the CEO of BlackRock, regarding Bitcoin, holds significant implications. According to the CEO, over 600,000 customer inquiries about Bitcoin were registered on the BlackRock website. Deaton contends that this information holds considerable significance.
Last week, the market observed a surge in response to a shift in sentiment among cryptocurrency investors, who rapidly transitioned from a pessimistic outlook on regulations to an optimistic one regarding a potential Bitcoin spot ETF.
BlackRock, the world’s largest asset manager with assets exceeding $10 trillion, may have played a role in this shift, having had 575 out of 576 ETF applications approved, thereby rekindling the possibility of a Bitcoin spot ETF being realized.
IntoTheBlock reported that centralized exchanges (CEX) witnessed a withdrawal of over $1.4 billion in Bitcoin and Ethereum last week. Subsequent to the submission of BlackRock’s Bitcoin spot ETF application, the cryptocurrency market experienced a resurgence in buying activity, as investors responded aggressively in favor of the development.
The introduction of a spot ETF resulted in a rise in the value of Gold.
IntoTheBlock’s blog post analyzes the impact of a spot ETF’s approval on the price of Gold. According to the post, Gold’s performance surpassed that of most other global assets in the years following the launch of the spot ETF in 2003.
In the year following the introduction of the ETF, the value of Gold increased by 27%, followed by a 172% increase over the subsequent five years, and a 369% increase over the following decade.
On the basis of IntoTheBlock’s on-chain analysis, it appears that significant investors have re-entered the market in response to the prospect of a Bitcoin spot ETF and amplified participation from traditional finance.
As a result, inflows from large holders also reached annual peaks. The quantity of Bitcoin that was added to addresses possessing 0.1% or more of the total supply increased by the largest amount in 2023. This development was discussed by Cryptocurrency influencer John E Deaton, who mentioned XRP and Bitcoin in his remarks.
