The Price of Bitcoin Might Reach $2.9 Million: $100 Billion Asset Manager VanEck

Posted by cryptonews Crypto News September 4, 2024 2.8k Views

According to VanEck’s projection, Bitcoin could reach $2.9 million in value and serve as a global reserve currency by 2050. Declining faith in conventional reserve assets and rising interest in alternatives like Bitcoin would be the main forces behind the shift.

Layer-2 (L2) solutions, according to VanEck, should solve Bitcoin’s scalability problems and improve its effectiveness. By 2050, they project that 10% of global trade and 5% of domestic transactions will be settled in Bitcoin, with central banks possibly holding 2.5% of their total assets in the cryptocurrency.

Key Points:

  • Bitcoin projected to reach $2.9 million by 2050.
  • Expected to settle 10% of global trade and 5% of domestic transactions.

As traditional currencies lose market share as a result of deteriorating economic fundamentals, this shift would take place.

Crypto Leads the Largest 2024 ETF Launches, Says The ETF Store

According to Nate Geraci, president of The ETF Store, cryptocurrency exchange-traded funds (ETFs) accounted for 13 of the top 25 ETF launches in 2024.

The spot Bitcoin ETFs were the most popular among the nearly 400 new launches this year.

Top performer: Fidelity’s Wise Origin Bitcoin Fund has received about $10 billion, while two other funds have received roughly $2 billion. BlackRock’s iShares Bitcoin Trust has received almost $21 billion in new capital.

On the Ethereum front, iShares Bitcoin Strategy is seeing inflows that total more than $1 billion.

Considering that the combined net assets of the Bitcoin and Ethereum ETFs exceed $60 billion, the adoption of crypto ETFs has grown to a significant extent.

This investment inflow suggests that the market is becoming more confident in digital currencies, which could lead to further price increases for Bitcoin and Ethereum as demand grows.

Higher prices for BTC would result from increased exposure to the asset by both institutional and non-institutional investors due to the growing demand and volume of Bitcoin ETF inflows.

Metaplanet Partners with SBI VC for Bitcoin Custody and Collateral Services

To provide Bitcoin custody solutions, Metaplanet has teamed up with SBI VC Trade, a Japanese investment firm. This enhances Metaplanet’s ability to finance itself by enabling it to use Bitcoin as collateral for financial leverage.

In order to protect itself against the volatility of the yen, Metaplanet added 360.4 BTC (worth $21 million on August 20) as a reserve asset earlier this year.

Within the $185 billion SBI Holdings, SBI VC Trade is a subsidiary that runs a cryptocurrency exchange that is registered in Japan.

The collaboration fits in with Metaplanet’s plan to grow its financial offerings by taking a resemblance to MicroStrategy’s Bitcoin investment model.

Key Points:

  • Metaplanet holds 360.4 BTC as a reserve asset.
  • SBI VC Trade operates under SBI Holdings, managing $185 billion in assets.

This development is seen as a positive signal for Bitcoin investor sentiment.

Looser Fed Policy and Global Trends Support Bullish Bitcoin Outlook

Softer Federal Reserve policies and global macroeconomic factors are setting a bullish tone for Bitcoin. ETC Group analysts believe that Bitcoin’s position may be strengthened by its adaptation to U.S. monetary policy, particularly a prospective interest rate reduction.

Anticipations of a Fed rate cut have revived optimism in the cryptocurrency market, despite a recent decline in sentiment, partly attributed to worries about a U.S. recession and a stronger yen.

Lower interest rates frequently encourage investors to pursue riskier investments, such as Bitcoin, which increases its allure.

Key Points:

  • Bitcoin adjusts to U.S. monetary policy shifts.
  • Market sentiment lifted by Fed rate cut expectations.

This trend may boost Bitcoin demand as the global economic landscape evolves.

Bitcoin Faces Key Resistance at $57,200: Will It Break Out?

The price of bitcoin (BTC/USD) is still falling; it is currently trading at $56,718, down 1.35% from the previous day.

The price has dropped below the crucial $57,207 support level as a result of the recent sell-off, suggesting that sellers are still in control.

The 50-period EMA, which is located at $59,169, is serving as a formidable obstacle to any short-term recovery attempts.

At 33, the Relative Strength Index (RSI) suggests that Bitcoin is getting close to oversold territory, which may be a sign of an impending relief rally.

But as long as prices stay below the pivot point of $57,207, the bears are probably going to continue to be in control.

The immediate support level is $55,085, and if the sell-off gets more aggressive, there is a further downside target at $53,228.

Any bullish momentum on the upside will need to be broken through resistance at $59,169 and $61,192. Up until then, the trend and risks are still very much in the negative direction.

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