Markets
Russian experts say Bitcoin bull market will fall short of 2017 highs
Last updated: May 21, 2024, 7:30 p.m. EDT | 3 minutes of reading
Current Bitcoin bull market falls short of 2017 highs, Russian experts said on May 20.
The comments came on the topic of Bitcoin and cryptography. report from the Roscongress Foundationone of Russia’s largest development NGOs and conference organizers.
“Bitcoin Bull Market Fever Will Weaken” – Experts Weigh In
The report’s authors claimed that BTC’s new all-time high in March this year was part of a “speculative game” played “against the backdrop of one-off Bitcoin ETF approvals.”
However, the sudden rise in Bitcoin prices in March has since “not caused a stir similar to the situation at the end of 2017,” they wrote.
The authors highlighted internet search engine queries “related to cryptocurrencies,” which “remained well below maximum values.”
Michael Novogratz, the founder of Galaxy Digital, said Bitcoin will likely remain stuck in a relatively tight trading range for at least the current quarter. https://t.co/KuTeCZSVlt
– BloombergCrypto (@crypto) May 21, 2024
The authors added that in 2024, only half as many people worldwide were searching for BTC and crypto-related topics as in 2017.
Better Access to Bitcoin Thanks to ETF Approval, Experts Say
The experts also noted that analysts had claimed that spot Bitcoin ETFs would “make cryptocurrency investments more accessible to a wider range of people.”
But the evidence seems to suggest that hasn’t happened yet, the foundation said.
The authors explained that “transaction protocols based on mining of the Bitcoin network” pose a “barrier” to “full inclusion” in the traditional financial system. The authors wrote:
“In general, cryptoassets are still not suitable for full integration into the traditional financial system. The main obstacle for traders is the fact that crypto-assets are not suitable for clearing.
In the financial world, clearing (aka “netting”) refers to “the net presentation of separate assets and liabilities or income and expenses in the financial statements.”
The foundation added that market data shows that most investors still view Bitcoin as a “high-risk asset” along with “tech stocks.”
Additionally, the authors claim that BTC is “much more highly correlated with stock market movements” than assets like gold. As such, it fits the profile of a “classic high-risk speculative asset”.
Update: @JSeyff and I’m increasing our odds of Ether ETF spot approval to 75% (from 25%), hearing talk this afternoon that the SEC may do a 180 on this issue (a growing issue). more political), so now everyone is scrambling (like us, everyone assumed they would be refused). See… https://t.co/gcxgYHz3om
– Eric Balchunas (@EricBalchunas) May 20, 2024
The authors also spoke of a “weak reaction” from the Bitcoin market in April. reduce by half event”, and added:
“The behavior of an asset is increasingly determined by the general level of willingness of financial market participants to take risks. »
Russian government asks loss-making Gazprom not to pay dividends for 2023 https://t.co/qnqypdsclZ pic.twitter.com/Ww1KwmbToC
-Reuters (@Reuters) May 20, 2024
However, the report was not entirely pessimistic on BTC or the effect of the one-time approval of Bitcoin ETFs in the United States. The authors wrote that in the long term:
“The emergence of spot Bitcoin ETFs will undoubtedly make investing in cryptocurrency more accessible to all market participants.”
But they said the temporary price increases were the result of “speculative play” by traders trying to capitalize on ETF approvals in Washington.
They added that the “range of Bitcoin price predictions for the end of the year” was “extremely wide.” The authors explained:
“At the peak, the average high forecast is $121,764, while the average low is $50,138. »
Do Stablecoins Influence Bitcoin Prices?
The authors also noted that there had been “growth in the capitalization of stable coins» since 2017.
And, they said, this helped spur a Bitcoin bull market in 2021 and 2024. The authors wrote:
“The first wave of [Bitcoin price] growth in 2017 was caused by the popularization of cryptocurrencies. The second, in 2021, is explained by a sharp increase in the supply of stablecoins and the transfer of prices to virtual spaces.
Experts concluded that the historic peak in 2024 was “due” in part to “a restoration of stablecoin supply.”
Earlier this month, Russian experts claimed that BTC and altcoin mining are expected to grow by 20-40% before the end of the year..