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Bitcoin Fundamentals Have Never Looked Greater: Bernstein

Bitcoin Fundamentals Have Never Looked Greater: Bernstein

Bitcoin (BTC) ‍is predicted​ to become a significant global ⁣asset, reaching a market⁣ cap of ‌over $3 trillion by mid-2025, according to a recent study by dealer Bernstein. The study highlights that the fundamentals of ⁤Bitcoin are currently strong, with ‌70% of the total⁢ supply not being traded in the ⁢past year.

This high level of supply retention is ⁢unprecedented for a financial asset, especially one known​ for its ‌volatile price movements driven by supply shortages. The upcoming Bitcoin⁤ halving, expected to occur in April or May⁤ of next year, is also seen as a ⁤positive catalyst. The halving will​ reduce the monthly selling pressure from⁤ miners to less ‍than $500 million, compared to the current ⁢$1 billion at ⁣today’s⁤ prices‌ of $37,000 per‌ BTC.

Additionally, new ​accounting ​standards set by the Financial Accounting​ Standards Board (FASB) ⁣will allow‍ companies⁢ to book mark-to-market ⁢gains ⁣on ⁢their Bitcoin holdings. This change is​ expected ⁢to encourage more​ companies to hold Bitcoin as a treasury asset, creating additional demand from corporate entities.

Furthermore,⁣ the approval of a​ U.S.-listed Bitcoin exchange-traded fund (ETF) is seen‍ as another tailwind for⁣ Bitcoin. This ETF would make it easier​ for​ both ⁣companies and retail investors to access and⁢ invest in Bitcoin.

Overall, ⁤the study suggests that Bitcoin’s market cap will continue to grow significantly in the coming years,‍ driven by strong fundamentals,‍ the upcoming halving, favorable accounting treatment, and ⁤increased ‌accessibility through ETFs. This presents opportunities for investors and companies alike to participate ⁣in the growing Bitcoin market.

To illustrate the points made in the⁢ study, let’s consider a real-world example.⁤ Company XYZ, a multinational ⁣corporation, decides to allocate a portion of⁢ its⁤ treasury reserves to Bitcoin. They do so because they‍ believe in the long-term potential of Bitcoin as a store of value and want to diversify their‌ holdings. By following the new accounting guidelines,⁢ XYZ can⁣ book mark-to-market ‍gains on​ their Bitcoin holdings, which enhances ‍their financial position. This decision also aligns ‍with the growing trend of⁣ companies embracing Bitcoin as‍ a treasury asset.

 

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CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin67,853 0.02 % 2.12 % 3.75 %
Ethereum2,197.2 0.23 % 0.67 % 2.46 %
Dogecoin0.1548 0.37 % 0.09 % 7.69 %
USDC1.000 0.10 % 0.02 % 0.08 %
Cardano0.2543 0.15 % 1.68 % 3.38 %
Tether0.9990 0.10 % 0.04 % 0.02 %
Binance Coin (Wormhole)222.47 0.38 % 4.71 % 3.08 %