Analysts project a bright future for Bitcoin, with its market capitalization expected to reach a staggering $3 trillion by mid-2025. Bernstein analysts highlighted strong fundamentals in the cryptocurrency, citing a significant portion of Bitcoin supply having remained dormant for over a year. This forecast comes as the crypto community anticipates the next Bitcoin halving event, scheduled for April or May 2024, which is predicted to reduce the amount of Bitcoin sold by miners from today's $1 billion to less than $500 million if prices remain around the current $37,000 mark.
The Financial Accounting Standards Board (FASB) has introduced new guidelines that may further bolster corporate interest in Bitcoin. These guidelines allow for mark-to-market gains, which are expected to make Bitcoin an attractive option for corporate treasury assets. The potential approval of a U.S.-listed spot bitcoin ETF in early 2024 is also on the horizon, which would provide investors and companies with easier access to the cryptocurrency.
This optimistic outlook is framed against concerns of economic slowdown and debt monetization challenges anticipated in early 2024. In this context, Bitcoin's role as an inflation hedge appears likely to become more pronounced. The combination of these factors—dormant supply, halving events reducing miner sell-off, favorable accounting standards, and the potential for an ETF—paints a picture of increasing corporate and investor interest in Bitcoin as a strategic asset in the face of macroeconomic uncertainties.
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