Despite facing hurdles, bitcoin’s price could rebound and potentially soar to $60,000 this year, per CoinShares’ analysis.
In a report published Monday, CoinShares forecasted 2024 as a pivotal year for digital assets, anticipating a surge in bitcoin’s value following the recent launch of spot-based bitcoin ETFs in the US.
On January 10, the US Securities and Exchange Commission (SEC) authorized 11 spot bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust, Grayscale Bitcoin Trust, and ARK 21Shares Bitcoin ETF. The approval set the stage for robust competition for market share.
The SEC earlier rejected applications for spot bitcoin ETFs over investor safety concerns. Its latest decision marks a pivotal moment for the industry.
The 11 spot Bitcoin ETFs saw a record-breaking $4 billion in trading volume on their debut, the largest for any single asset’s opening day in ETF history, experts say.
“This development, a decade in the making since the initial SEC application, has opened the market to a broader range of investors, representing a major milestone in the acceptance of digital assets,” James Butterfill, head of research at CoinShares, wrote on Monday.
Butterfill noted the difficulty in precisely forecasting post-launch investment flow.
But he estimated that 10% of the current $3 billion assets under management could drive bitcoin’s price to about $60,000. He did not specify an exact month or timeline for this occurrence.
The analyst also highlighted that monetary policy will play a crucial role in shaping bitcoin’s value this year.
He noted that while rising interest rates are currently leading investors to explore alternatives such as US Treasuries, an anticipated Fed rate cut in early 2024 could enhance the appeal of
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