Coinbase’s country director for Singapore, Hassan Ahmed, is saying that there are two upcoming catalysts that portend a bullish outlook for Bitcoin (BTC) in 2024.
Ahmed says in a CNBC interview that Bitcoin will see a potential increase in demand while at the same time experiencing a fall in the supply.
“So this spot Bitcoin ETF (exchange-traded fund) for the US markets is really as foundational and as big a deal as people are making it out to be. It’s a structural market change for this asset class that’s coming into its being.
The noise and chatter around sort of this approval is certainly intensifying and we’ll see how things play out. But the way we see it is that there’s going to be secular demand and fund flows that are going to be coming into this asset class and this asset in particular.
And then when you couple that with the halving that’s coming up which will reduce the block subsidy, that’s on the supply side, by half, those two factors will, I think, combine together to be pretty explosive.”
The Coinbase executive says regardless of a lack of regulatory clarity in the industry, the expected Bitcoin ETF will legitimize the asset class for institutions that may have been weary of the space before.
“Although in the US the regulatory conversation is still evolving, the fact is that despite that, this ETF is starting to come into its being and the SEC is making way for it signals that just the demand and the weight that’s being put behind this asset class is too loud to ignore now.
And what it does is it further destigmatizes and legitimizes this asset class by providing kind of a familiar and compliant channel for these asset managers and allocators to be able to access this asset.”
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