SUPERNEWS

Crypto

Bitcoin Eyes $80,000 Amid ETF Frenzy, Binance CEO Predicts

Binance CEO predicts Bitcoin to exceed $80,000, driven by ETF inflows and institutional investments amidst market volatility.

By Bill Bullington

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3/18, 02:16 EDT
Bitcoin / U.S. dollar

Key Takeaway

  • Binance CEO Richard Teng predicts Bitcoin will surpass $80,000 due to increased institutional investment in crypto-backed ETFs.
  • Bitcoin's price has already surged 56% this year, hitting nearly $73,798, amid concerns of a bubble and market volatility.
  • Continuous inflows into US spot Bitcoin ETFs signal growing interest from endowments and family offices.

Bitcoin's Record-Breaking Rally

Binance Chief Executive Officer Richard Teng predicts Bitcoin will surpass $80,000, fueled by institutional investments into crypto-backed exchange-traded funds (ETFs). Teng's forecast, shared at an event in Bangkok, is based on the combination of decreasing supply and increasing demand. Despite expecting fluctuations, he believes these will benefit the market. This year, Bitcoin has already seen a 56% increase, reaching nearly $73,798, though it has also faced volatility and concerns of a bubble.

Wall Street's Growing Acceptance

The narrative around Bitcoin on Wall Street is shifting. Despite skepticism from figures like Jamie Dimon, Charlie Munger, and Elizabeth Warren, the demand for Bitcoin remains strong. This demand has led to a dilemma for investment firms: to continue dismissing Bitcoin or to start offering it to clients. Firms like Bank of America’s Merrill Lynch and Wells Fargo have begun providing access to Bitcoin ETFs, albeit with caution. The launch of nearly a dozen Bitcoin ETFs in the US has contributed significantly to the coin's rally, with BlackRock’s iShares Bitcoin Trust amassing $10 billion in just seven weeks.

The Influx of Institutional Money

The approval of US spot Bitcoin ETFs has led to unprecedented inflows, with about $8 billion netting into these funds. This influx is expected to continue as more endowments and family offices increase their allocations. The surge in demand for Bitcoin, coupled with the "hodler" mentality, has led to increased market activity and occasional outages on platforms like Coinbase. However, this rally also raises concerns about market risks and potential scams, such as "rug pulls."

Management Quotes

  • Richard Teng, CEO of Binance:

    "Bitcoin is set to continue its record-breaking rally and rise above $80,000 as institutional investors pour more money into the crypto-backed exchange-traded funds... we’re just getting started." "I had earlier estimated the cryptocurrency would end the year at around $80,000, but now sees it exceeding that with supply reducing and demand continuing to come through."