The recent correction in the cryptocurrency market presents an opportunity for long-term investors, providing a significant tailwind that could propel Bitcoin to $100,000 by the end of the year.
That’s what Matt Hogan, chief investment officer at crypto asset management firm Bitwise, said in a recent investor interview. Note Wednesday, a day before official U.S. inflation data showed a decline in June.
Inflows into US spot bitcoin exchange-traded funds, a post-halving supply shortage, the eventual launch of an Ethereum spot ETF, interest rate cuts by the US Federal Reserve and a shift in the political climate in Washington could provide respite for the cryptocurrency’s price decline, he said.
“The cryptocurrency market is currently going through a strange dynamic,” Hogan said. “All the short-term news is bad, but all the long-term news is good. This dichotomy creates an incredible potential opportunity for long-term investors.”
This was released by the U.S. Bureau of Labor Statistics. report On Thursday, the Consumer Price Index (CPI) fell 0.1% in June after remaining flat in May. This was the first decline in the index since May 2020.
“Tonight’s CPI release had everyone’s attention,” QCP Capital said in a short report. Note “This optimism is reflected in the continued rise in the stock market, but it has not yet been priced into the cryptocurrency market.”
Subdued inflation could strengthen the Fed’s resolve to start cutting interest rates this year, benefiting riskier assets like Bitcoin.
According to CME FedWatch, traders see an 84.6% chance of that happening, which could happen as soon as September. tool.
Bitcoin supply continues to decline after the halving, and miners Surrender As assets become harder to mine.
Concerns over Mt. Gox creditors and Germany’s Bitcoin selloff are weighing on investor sentiment, but the impact is unlikely to be significant given demand for ETFs. Decryption Before report.
Since its launch in January, the spot bitcoin ETF has attracted roughly $15 billion in net new assets, but it has yet to be approved for use by major asset management platforms such as Morgan Stanley or Wells Fargo.
“If that happens, we’ll see billions more dollars flowing in, probably later this year,” Hogan said.
