Bitcoin Bitcoin/USD is going through a period of cautious optimism, according to a new report MessariIt was boosted by institutional flows into newly approved ETFs and promises made by the new presidential administration.
What happened: The report suggests that Bitcoin’s future trajectory depends on governments’ ability to translate campaign rhetoric into actual policy outcomes.
Bitcoin experienced a major price surge in 2024, reaching an all-time high of $75,000 in the first quarter after the launch of the Bitcoin ETF.
The vast majority of institutions throughout the year were net buyers of Bitcoin, among which Grayscaleof GBTC Capital outflows fell sharply BlackRockof IBIT Become the largest net buyer.
ETF issuers currently hold more than 1.1 million BTC, of which BlackRock black Grayscale is the majority.
micro strategy Magnetic transmission technology Continuing to actively invest in Bitcoin, its total holdings now exceed 420,000 BTC after recent purchases of $2.1 billion.
The company plans to raise another $42 billion to fund additional purchases over the next three years.
Also Read: Solana surges 2,000% in 2 years, but could be higher: Report
The election of a new president expressed a positive attitude toward cryptocurrencies, creating a promising environment for the industry.
Some of his promises include firing the SEC commissioner Gary Genslerintroducing a National Strategic Bitcoin Reserve, forming a Presidential Council on Bitcoin and Cryptocurrency, and ensuring Bitcoin mining in the United States
Although the establishment of a federal strategic Bitcoin reserve is unlikely, the report emphasizes that the implementation of some high-possibility policy projects can maintain the current market enthusiasm.
The Bitcoin network is undergoing a major evolution with the introduction of ordinal numbers and runes, making NFTs and fungible tokens possible, bringing new functionality.
Bitcoin staking agreement Babylon This is also a new development that allows holders to stake their assets to secure other networks.
Despite these advances, the report notes that the network was not designed for maximum programmability, but low penetration of Bitcoin utility could exceed the $30 billion market value.
Messari expects institutional ETF inflows to continue to be a major driver of price action, which could lead to more stable and less volatile price action.
The report also acknowledges that the success of new developments such as Runes, Ordinal and Bitcoin Staking will depend on user adoption and continued improvements to the user experience.
Read next:
Picture: Shutterstock
This content is generated in part with the help of artificial intelligence tools, and is reviewed and published by Benzinga editors.
Market news and data brought to you by Benzinga API
© 2024 Benzinga.com. Benzinga does not provide investment advice. all rights reserved.
