Key Takeaways
- Notwithstanding the halving, Bitcoin is projected to have a bullish Q2 2024.
- Large institutions are entering the market via ETFs.
- Coinbase predicts this institutional entry will fuel Bitcoin's surge.
Bitcoin's Bullish Projection
Coinbase head of institutional research David Duong in a LinkedIn post forecasts a strong second quarter in 2024 for Bitcoin, the world's largest digital currency by market capitalization.
Entry of Large Institutions
The bullish prediction is primarily driven by the entry of large institutions into the Bitcoin market, facilitated by Exchange Traded Funds (ETFs).
Writes Duong,
“[On] the demand side, the 90-day review period that many wirehouses employ when conducting due diligence on new financial offerings – like spot Bitcoin ETFs – could conclude as early as April 10th. That is, it’s customary for large broker-dealers to undertake rigorous 360-degree evaluations before permitting wealth advisors to allocate client assets.
Their assessments thoroughly examine (1) whether such products satisfy investment minimums and liquidity thresholds as well as (2) whether the requisite daily trading, custodial and regulatory reporting activities impose any insurmountable operational challenges to their existing infrastructure.”