- Major brokerage firms like Morgan Stanley and UBS are increasing the accessibility of Bitcoin investments, which may have a greater impact than the halving event.
- With less supply matching more demand, spot Bitcoin ETFs and the most recent halving are creating the conditions for a positive market situation.
In an interview on CNBC’s Fast Money, renowned cryptocurrency investor Brian Kelly called the “bullish intersection” for volatility in the Bitcoin market, which looks to be at a turning point in the rapidly changing world of cryptocurrencies.
A notable increase in demand and a decline in supply are the main drivers of this intersection, creating the conditions for possible large profits.
Traditional Brokerage Firms’ Effect
The entry of established financial giants like UBS and Morgan Stanley into the Bitcoin space could have a greater impact on the market dynamics of the cryptocurrency than the most recent halving event.
These firms bring with them a wave of transparency and confidence. These brokerage firms are endorsing the asset and potentially attracting additional capital by introducing Bitcoin investment options to their platforms. This might make the asset more accessible to mainstream investors. Kelly stated:
“So Morgan Stanley and UBS, once they are online, and they can have their customers start to come into Bitcoin, that’s a lot of pent-up demand.”
In the Bitcoin ecosystem, the expected approval of spot Bitcoin exchange-traded funds (ETFs) is another tremendous happening. An increase in demand, particularly from investors partial to more orthodox investment vehicles, is expected to result from such acquiescence; this can only prove the inherent worth of Bitcoin.
This is particularly important now that Bitcoin has experienced one halving, an event that tends to produce higher prices because the supply available per coin drops off.
Comprehending the Supply Limitations of Bitcoin
As for supply, the last halving event served to suppress the flow of new bitcoins coming onto the market. The decrease in input supply has further increased supply limitations. It is now a perfect storm for rising prices, with limited supply meeting growing demand.
Fewer and fewer coins are being made, but a large number of them are moved to private ‘cold storage’ wallets instead of from one exchange into another normal wallet.
Future Prospects: Bitcoin as the New Gold
Bitcoin has a bullish future because, in the long term, it may become a haven similar to gold, in line with what ETHNews previously disclosed.
Other than that, Brian Kelly believes that it could take anywhere from 10 to 20 years for such a transition to take place, meaning that BTC is now still in the early stages of its use as a widely circulated financial asset.
Recent movements and CoinMarketCap data support this bullish attitude. Although it has decreased by 3.86% in the past day, the price of Bitcoin is currently $64,276.23 at the time of writing. However, it has increased by a strong 5.23% in the last week.
A further indication of investor confidence comes from the fact that BlackRock’s iShares Bitcoin Trust (IBIT) has seen a steady stream of inflows for 69 days running, coinciding with the halving of Bitcoin, as formerly reported by ETHNews.