Bitcoin BTC
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appears to be an attractive choice for portfolio diversification in a macroeconomic climate where inflation remains persistent, according to analysts.
Jag Kooner, head of derivatives at Bitfnex, said a variety of macroeconomic headwinds in 2024 could strengthen the safe-haven status of assets like bitcoin, gold and silver. “Persistent inflation levels, which remain above the comfort zones of central banks around the world, are expected to lead to a prolonged period of higher interest rates. This scenario is likely to moderate current market expectations for a rapid easing of monetary policies in developed markets. which could lead to some disappointment among investors,” he added.
In an email to The Block, Kooner outlined various headwinds that could thwart market growth in the coming year. “Looking ahead to 2024, the outlook for stock markets looks more challenging. Factors such as modest earnings growth and various geopolitical risks are expected to put downward pressure on stock markets,” he added .
He predicts 2024 will be a year of modest growth. “There could be only modest earnings growth for the S&P 500, in the range of 2-3% and a target of 4,200 for the index, with a downward bias,” he said. he declares.
Potential macroeconomic obstacles
TRES co-founder Tal Zackon told The Block that the newly approved spot Bitcoin ETFs make it easier for traditional investors to use Bitcoin as a hedge against inflationary pressures.
Zackon also highlighted a number of factors supporting bitcoin’s status as a safe haven amid uncertain macroeconomic conditions.
“The upcoming bitcoin halving in April, a unique supply-limiting mechanism, reaffirms bitcoin’s potential as a powerful anti-inflationary tool,” he added.
The Next Bitcoin Halving Event
Bitcoin was changing hands for $50,890 as of 5:40 p.m. ET, according to The Block’s price page. The GM 30 Index, representing a selection of the top 30 cryptocurrencies, slipped 0.92% to 112.43 over the past 24 hours.
The price of Bitcoin has fallen by more than 1% in the last 24 hours. Image: The block.
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