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Analysts predict a bright future for the , whose market capitalization is expected to reach a staggering $3 trillion by mid-2025. Bernstein analysts highlighted the cryptocurrency’s strong fundamentals, citing a significant portion of bitcoin’s supply remaining dormant for over a year. This prediction comes as the crypto community anticipates the next bitcoin halving event, scheduled for April or May 2024, which is expected to reduce the amount of bitcoin sold by miners from $1 billion today to less than $500 million dollars if prices remain around the current $37,000 mark.
The Financial Accounting Standards Board (FASB) has introduced new guidelines that could boost corporate interest in bitcoin. These guidelines allow for market value gains, which should make bitcoin an attractive option for corporate treasury assets. Also on the horizon is the potential approval of a U.S.-listed bitcoin ETF in early 2024, which would allow investors and businesses easier access to the cryptocurrency.
This optimistic outlook comes against a backdrop of concerns related to the economic slowdown and debt monetization difficulties expected at the start of 2024. In this context, the role of bitcoin as an inflation hedge seems likely to accentuate. The combination of these factors – dormant supply, halving events reducing miner selling, favorable accounting standards and the potential for an ETF – paints a picture of growing corporate and investor interest in the bitcoin as a strategic asset in the face of macroeconomic uncertainties.
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