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The recent prediction by Bernstein analysts that Bitcoin will reach $200,000 by 2025 – up from their previous forecast of $150,000 – is generating a lot of buzz in the crypto space. Their forecast hinges on the belief that spot Bitcoin ETFs will account for a significant chunk (7%) of the total circulating supply by then.
This prediction is a welcome sign for Bitcoin bulls, suggesting a new bull cycle is underway following the latest halving event in April. Bitcoin maxi Michael Saylor seems to be on board, with his company, MicroStrategy, purchasing an additional 119,000 BTC for $786 million this week, which followed the company's $800 million convertible note offering to institutional investors. This move increases MicroStrategy's total holdings to over 226,331 tokens, worth just under $15 billion, solidifying its position as the major institutional holder of the cryptocurrency.
While we agree with their views on Bitcoin as a hedge against inflation and a potential store of value, our in-house analysts say that further catalysts are needed to propel Bitcoin to more lofty heights.
"We're still waiting for signs of mass institutional adoption of Bitcoin as a diversifier for it's risk-return and lower correlation characteristics. We do not expect these inflows to happen as soon as Bernstein says but the amount of inflows that could go into Bitcoin could drive the price to these levels in the longer term," says brn analyst Valentin Fournier.
Meanwhile, the top two crypto tokens have mostly been stuck trading in a range – BTC is down 3.2% and ETH is down 3.8% over the past week, while altcoins and the broader crypto market have taken a hit. Coingecko's basket of memecoins is down 15.3% over the past week, while its Artificial Intelligence basket is down 10.8% over the past 7 days.
Risk appetites on the Fear & Greed Index have cooled even more, from 74 last week, "Greed," to 63, still " Greed."
The Fear & Greed Index uses 5-6 measurements to assess the current sentiment of the market and then rates that level of emotion on a scale of 1-100 – 1 is extreme fear and 100 is extreme greed.
But what happens next? Our fine analysts at brn said:
"The streak of ETF outflows continues but has slowed down, with outflows of $100 million yesterday. Meanwhile, Bitcoin is stabilizing above $64,000. Positive news on inflation in the UK, which has hit the 2% target, alongside a second interest rate cut in Switzerland, and the ECB's expected rate cuts in September and December, suggest that global liquidity levels will rise throughout 2024. We expect this increase in liquidity to propel Bitcoin and Ethereum to higher levels."
Bitflyer Takes Over FTX's Japanese Unit in Multi-Billion Yen Deal
Japanese cryptocurrency exchange Bitflyer has announced the acquisition of FTX Japan, the Japanese subsidiary of the now-bankrupt crypto exchange, Bitflyer said in an announcement on Thursday.
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CertiK, Kraken Reach Resolution in Bug Bounty Saga
The saga surrounding CertiK's security practices and their interaction with Kraken appears to have reached a resolution. After the two sides traded accusations in a very public spat in the past weeks, both parties have confirmed the return of the disputed funds. We still don't know why CertiK did it though, and this saga is clearly far from over.
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Binance Fine Paves Way for Re-Entry Into Indian Market
India is open to Binance serving customers in the country once again. It just has to pony up $2.2 million in fines first.
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Javier Milei Advocates Bitcoin, Currency Competition in Argentina's Economy
Argentinian President Javier Milei has reiterated his strong support for Bitcoin and the concept of free currency competition within the country's economy. A vocal critic of excessive government intervention and monetary policy, Milei sees cryptocurrencies as a potential solution to stabilize Argentina's economy.
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The SEC vs. Ethereum: A Case of Regulatory Overreach (and a Surprise Twist)
The SEC has halted its investigation into whether Ether is a security. While this paves the way for the long-awaited approval of Spot Ethereum ETFs in the US, the battle of US crypto regulation is far from over.
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Why Tiger Brokers is Embracing Crypto in Hong Kong
To learn more about Tiger Brokers' crypto embrace, Blockhead talked to the firm's VP of engineering and head of crypto, Kelvin Liu.
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Stablecoin Issuer Tether Announces Launch of Alloy, a New Digital Asset Backed by Physical Gold
Tether, the company behind the world's leading stablecoin USDT, is making a splash with the launch of a new digital asset called Alloy by Tether (XAU₮). Tether will create aUSD₮ tokens by depositing Tether Gold (XAU₮) as collateral. aUSD₮ is a digital currency designed to track the value of 1 US dollar. This means that the value of aUSD₮ will fluctuate in line with the price of gold.
Blockhead
Australia Securities Exchange Approves First Spot Bitcoin ETF
The Australian Securities Exchange (ASX), which handles around 80% of the country's equities trading, gave the green light to VanEck's product, which launched on Thursday.
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Events
Coinfest Asia
On Blockcast this week, we take a closer look at the crypto media space and the opportunities for Web3 adoption in Southeast Asia. Our guest, Steven Suhadi, co-founder of Indonesia Crypto Network (ICN) and Coinfest Asia, and board member of the Indonesian Blockchain Association shares his insights on building a successful Web3 media business, navigating the current market trends, and the potential of Web3 projects in the region. We also delve into ICN's publications and the upcoming Coinfest edition.
Get ready to connect with 6,000+ people from 2,000+ companies at the largest Web3 festival in Asia. Get your tickets now with Blockhead's 10% discount code: CA24BLOCKHEAD
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- Pitch and write editorial features: Craft compelling narratives that unpack the latest trends, innovations, and challenges within the crypto and blockchain space.
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