CoinShares: Bitcoin Could Hit $58,700

According to analysts at CoinShares, the approval of a Bitcoin ETF and the expected loosening of monetary policy by the Federal Reserve in the first half of 2024 will push the cost of digital gold to around $58,700.

This prediction was outlined in their annual report. The experts provided a model that shows the correlation between the inflow of funds into management companies and the fluctuation in Bitcoin prices.

The model has an R2 value of 0.31, indicating its imperfections. As a conservative estimate, analysts assumed a 10% inflow of funds into ETFs, which would amount to around $3 billion of total industry AUM.

They also noted that it may take some time for corporates and funds to gain enough knowledge and confidence before investing in this product.

Furthermore, the report mentions that the attractiveness of the US dollar may decrease due to concerns about the country’s national debt and geopolitical issues, providing further support for an increase in the Bitcoin price. The upcoming halving is also expected to contribute to this rise.