The report said the world’s largest cryptocurrency will benefit from several positive catalysts in 2024. According to research, Bernstein predicts Bitcoin to be a $3 trillion global macro-political asset, quadrupling its market cap by mid-2025.
Bernstein asserts that the cryptocurrency’s fundamentals, currently at their strongest, indicate that 70% of the outstanding supply has not undergone trading in the past year.
“Bitcoin has reached a historic peak – these turn rates are incredible for a financial resource, especially one famous for big swings caused by a shortage,” stated analysts like Gautam Chhugani.
Another good sign is that BTC is halving, probably in April or May. According to Bernstein, this halving should lower monthly sales pressure from miners to under $500 million from about $1 billion with the current prices of $37,000 per BTC.
FASB Boost: Bitcoin Gains & ETF Await
The new rules from the Financial Accounting Standards Board (FASB) are a plus. They lets businesses log gains from changes in bitcoin values. “This will make companies want to hold bitcoin as a treasury asset. That will bring in new demand from them,” said the report.
A positive factor is the green light for a U.S-listed, bitcoin exchange-traded fund (ETF). This allows businesses and sellers easier cryptocurrency access. The Bitcoin ETF in the U.S. is slated for approval in early 2024. The Securities and Exchange Commission (SEC) is currently handling applications from top asset managers, as reported by the writers.
Moreover, The document highlights potential scenarios, including “debt monetization” and a severe economic slump in early 2024. This downturn could result from the delayed impact of interest rates adjusting too much for inflation.
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Furthermore, The document suggests that Bitcoin’s function as a “shield against currency devaluation” might gain prominence in such circumstances. Overall, the analysis underscores the potential heightened significance of Bitcoin in the face of economic challenges.