Hawkish views on the potential for interest rate cuts from the US Federal Reserve have supported gold among traditional investors – a fact that could lead to increased demand for Bitcoin, in Coinbase’s view.
“In our view, the increased acceptance of bitcoin as a form of ‘digital gold’ could enable demand from a new subset of investors in this market regime,” wrote research analyst David Han institutional at the cryptocurrency exchange. a report published yesterday.
“As a result, we believe dips will likely be bought more aggressively compared to previous cycles, even if volatility persists during price discovery,” he added.
Han also noted that Bitcoin price volatility could be dampened by the recent launch of Bitcoin spot exchange-traded funds in the United States – and the wider access to capital they bring.
“In our view, the capital unlocked by ETFs represents perhaps the most fundamental change in market structure between the previous 2020-2021 cycle and today,” Han wrote, adding: “This capital unlocked, associated next cycle Bitcoin BTC
+2.40%
Han and fellow Coinbase analyst David Duong said earlier this week that bitcoin’s halving could already be priced in by savvy traders, although the collective belief in a halving-related price rise half could still achieve such a result.
The Bitcoin halving is expected to happen in about 14 days, according to The Block’s Bitcoin Halving Countdown.
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