The bank’s analysis points to the U.S. potentially approving Bitcoin and Ethereum spot exchange-traded funds (ETFs) in the first quarter of 2024, which is expected to significantly boost institutional investment in the digital currency space. The approval of these financial products would mark a milestone for the cryptocurrency industry, providing easier access and potentially increasing investor confidence.
Adding to the bullish sentiment, Bitcoin’s market capitalization has achieved a dominant 50% share of the total cryptocurrency market since April. This milestone underscores Bitcoin’s status as the leading digital asset, often viewed as a safe haven within the volatile crypto market.
Miners’ behavior is also contributing to the positive outlook, with a notable reduction in the selling of mined Bitcoins. Reports indicate that miners have decreased their sales to approximately 80% in the last quarter of this year, suggesting a collective strategy of accumulation in anticipation of higher prices.
The anticipated Bitcoin halving event, scheduled for late April 2024, is another pivotal factor in Standard Chartered’s forecast. Historically, halving events, which reduce the reward for mining new blocks and effectively constrict the new supply of Bitcoin, have been followed by significant price increases within the subsequent months.
Furthermore, the forecast incorporates macroeconomic considerations, such as the recent decline in U.S. Treasury yields to 4.60%. Lower yields can make riskier assets like Bitcoin more attractive to investors seeking higher returns.
Standard Chartered’s analysis presents a comprehensive view of the potential trajectory of Bitcoin’s value, intertwining market dynamics, regulatory expectations, and supply-side economics.
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Source: Cryptocurrency - investing.com
