- VanEck’s data showed that BTC’s price could surge further in the coming days.
- Fidelity’s ETF moves one step closer to approval.
Bitcoin (BTC) has been sparking optimism in the cryptocurrency sector for quite some time. However, institutional research suggests that BTC still has a long way to go.
Is it greener for BTC?
The U.S. economy is expected to fall into recession in the first half of the new year, according to research from VanEck. Several indicators point to late-cycle dynamics, including slowing economic momentum, slowing hiring, and increasing bankruptcy filings.
Bitcoin and gold have experienced volatility during previous recessions, but Bitcoin is expected to remain resilient.
VanEck also pointed to Bitcoin’s performance during the 2020 recession. It initially fell, but then rose sharply after the Fed’s liquidity injection. Gold also faced declines during the early stages of the recession.
These factors lead to projected inflows into newly approved U.S. spot Bitcoin ETFs in the first quarter of 2024 of more than $2.4 billion.
This forecast is based on historical data related to the launch of the SPDR Gold Shares (GLD) ETF.
The analysis compares potential inflows into the Bitcoin ETF with historical inflows into the GLD ETF. It also takes into account changes in the money supply and interest rates.
Source: VanEck
The second half of 2024 is expected to see significant volatility due to increased interest in BTC and increased participation by the global population.
Regulatory changes are possible and a favorable outcome for Bitcoin is possible, potentially leading to all-time highs.
ETF Hype Continues to Grow
Additionally, Fidelity’s Bitcoin ETF is listed as FBTC on the DTCC website. When BlackRock listed its Bitcoin trust on DTCC, a spokesperson made it clear that it was not a sign that there were any pending regulatory issues.
The recent listing of Fidelity’s Bitcoin ETF on the DTCC website, known as FBTC, could be good for Bitcoin. Bitcoin becomes more popular and trusted when large companies like Fidelity show interest.
The fact that it is listed on a well-known platform suggests that Bitcoin may seem safer due to the presence of clear rules and regulations. This confidence from large investors and companies could increase the trust of ordinary people in Bitcoin.
Additionally, if major players get involved, more people may start taking interest in Bitcoin.
Read Bitcoin (BTC) Price Prediction for 2023-24
This increased interest could lead to higher prices. Additionally, when large corporations show that they believe in Bitcoin, it helps Bitcoin become more accepted in everyday life.
At the time of reporting, BTC was trading at $43,367.5. -1.3% in the last 24 hours.
Source: Santiment