After a rollercoaster 18 months, Bitcoin (and not necessarily the entire U.S. crypto market) will be on the upswing in the second half of 2023, according to analysts at Adamant Research and Standard Chartered Bank. It is said that there is a possibility. A key factor is likely to be increased adoption by traditional financial companies.
Important points
- New efforts by traditional financial companies into Bitcoin Spot ETFs could push Bitcoin prices higher.
- Analysts say the worst of the Bitcoin bear market is over and the price could exceed $100,000 in the next few years.
- Regulatory developments and the outcome of a key legal battle between the SEC and crypto platforms could have a major impact on the crypto market
- A downturn due to government policies could help the crypto market if it is recognized as a decentralized safe haven.
Traditional financial companies could drive up Bitcoin price
A series of cryptocurrency-related bankruptcies that began in the middle of last year culminated in the collapse of FTX in November, causing many investors to lose confidence in the cryptocurrency market. However, Bitcoin prices have recently fallen as many companies, including BlackRock (BLK), Fidelity Investments, Invesco (IVZ), and WisdomTree (WT), have doubled down on their applications for the Spot Bitcoin exchange-traded fund (ETF). I'm getting a tailwind.
Analysts say the worst may be over for Bitcoin prices
Adamant Research predicts that Bitcoin's accumulation phase will continue in the $22,000 to $42,000 range, after which the crypto asset will eventually reach an all-time high above $120,000 as a result of a multi-year bull market. Masu.
Adamant Research was one of the first companies to publish a report on Bitcoin over a decade ago, in November 2012. The company's subsequent reports in 2012, 2015, and 2019 came at a time when Bitcoin and the broader crypto market were in crisis. It is at a historically undervalued level, and the latest report was released in April 2023.
While potential downside risks such as regulatory crackdowns and liquidations by large holders are also discussed, the report points to continued high levels of inflation and continued high levels of inflation as two factors contributing to a future Bitcoin bull market. It cites turmoil in the bond market. Furthermore, the report argues that investors are better off sticking with Bitcoin than holding a variety of crypto assets.
According to Reuters, an April 2023 memo from Standard Chartered Bank predicts that the long crypto winter is over and Bitcoin could soar to $100,000 by the end of 2024. Ta. The memo suggests that several factors, including the banking sector's solvency crisis, have restored Bitcoin's reputation as a decentralized and rare digital asset.
Analysts at Standard Chartered expect Bitcoin prices to continue rising as the broader macro environment for risk assets improves, especially as the Federal Reserve moves away from tightening policy. Furthermore, the Bitcoin halving event scheduled for 2024 is expected to halve the rewards for miners, further increasing its value.
Keep an eye on regulatory developments
Over the past few months, the U.S. Securities and Exchange Commission (SEC) has cracked down on a number of crypto companies, including Binance, Coinbase (COIN), and Kraken. One of the regulator's main claims is that it considers crypto assets other than Bitcoin to be securities and takes action against crypto platforms that aim to sell unregistered securities.
Developments in legal battles such as Ripple Labs v. SEC over whether XRP tokens are securities and SEC v. Coinbase over whether staking-as-a-service can be construed as a sale of unregistered securities. could have broader implications for cryptocurrencies. market.
What does the US recession mean for cryptocurrencies?
A possible US economic recession could impact crypto prices and demand for high-risk assets, but it is unlikely that the recession will be caused by poor government policy and that cryptocurrencies will become decentralized digital safe assets. In such a situation, it could be a bullish factor for cryptocurrencies. Go to S&P Global's May report.
Additionally, the report also highlights the potential utility of cryptocurrencies in countries where currency values have significantly declined. However, S&P analysts say there is no conclusive data available on whether cryptocurrencies act as a useful inflation hedge.
