Bitcoin
Russian Experts Say Bitcoin Bull Market Will Fall Short of 2017 Highs
Last updated: May 21, 2024 7:30 pm EDT | 3 minutes reading
Bitcoin’s current bull market is falling short of 2017 highs, Russian experts stated on May 20.
The comments came on a Bitcoin and crypto theme Roscongress Foundation reportone of the largest NGOs and conference organizers focused on Russia’s development.
‘Bitcoin Bull Market Fever Will Falter’ – Experts Assess
The report’s authors claimed that BTC’s new all-time high in March this year was part of a “speculative game” played “in the context of spot Bitcoin ETF approvals.”
However, the sudden rise in Bitcoin prices in March “failed to cause a stir similar to the situation in late 2017,” they wrote.
The authors pointed to internet search engine queries “related to cryptocurrencies,” which “remained well below peak values.”
Michael Novogratz, founder of Galaxy Digital, said Bitcoin will likely remain stuck in a relatively narrow trading range for at least the current quarter https://t.co/KuTeCZSVlt
-Bloomberg Crypto (@crypto) May 21, 2024
The authors added that in 2024 only half as many people around the world searched for BTC and cryptocurrency-related topics than in 2017.
Better access to Bitcoin thanks to ETF approval, experts say
Experts also noted that analysts stated that spot Bitcoin ETFs would “make cryptocurrency investments more accessible to a wider range of people.”
But evidence appears to suggest that has not yet happened, the foundation said.
The authors explained that the Bitcoin network’s “mining-based transaction protocols” are an “obstacle” to “full inclusion” in the traditional financial system. The authors wrote:
“Generally, cryptoassets are not yet suitable for full integration into the traditional financial system. The main thing holding traders back is the fact that crypto assets are not suitable for clearing.”
In the financial world, netting (also known as “compensation”) refers to the “net presentation of separate assets and liabilities or income and expenses in the financial statements.”
The foundation added that market data shows that most investors still view Bitcoin as a “high-risk asset” in the same vein as “technology stocks.”
Furthermore, the authors stated that BTC is “much more strongly correlated with stock market movements” than assets like gold. As such, it fits the profile of a “classic high-risk speculative asset”.
To update: @JSeyff and I’m increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing talk this afternoon that the SEC could be doing a 180 on this (increasingly political issue), so now everyone is scrambling (as we , everyone assumed they would be denied). To see… https://t.co/gcxgYHz3om
-Éric Balchunas (@EricBalchunas) May 20, 2024
The authors also spoke of a “weak reaction” in the Bitcoin market to the month of April reduce by half event”, and added:
“The behavior of an asset is increasingly determined by the general level of willingness of financial market participants to take risks.”
Russian government tells loss-making Gazprom not to pay dividends for 2023 https://t.co/qnqypdsclZ pic.twitter.com/Ww1KwmbToC
-Reuters (@Reuters) May 20, 2024
However, the report was not entirely bearish on BTC or the effect of the approval of the spot Bitcoin ETF in the United States. The authors wrote that in the long term:
“The emergence of spot bitcoin ETFs will undoubtedly make investing in cryptocurrency more accessible to all market participants.”
But they said the temporary price increases were the result of “speculative play” by traders trying to capitalize on ETF approvals in Washington.
They added that the “range of year-end Bitcoin price predictions” was “extremely wide.” The authors explained:
“At the high end, the average forecast high is $121,764, while the average floor is $50,138.”
Stablecoins influencing Bitcoin prices?
The authors also noted that there was a “growth in the capitalization of stable coins”since 2017.
And, they said, this helped spur a Bitcoin bull market in 2021 and 2024. The authors wrote:
“The first wave of [Bitcoin price] growth in 2017 was caused by the popularization of cryptocurrencies. The second, in 2021, can be explained by a strong increase in the supply of stablecoins and the transfer of prices to virtual spaces.”
Experts concluded that the 2024 all-time peak was “due” in part to “a restoration of stablecoin supply.”
Earlier this month, Russian experts stated that BTC and altcoin mining should grow 20-40% before the end of the year.