Standard Chartered’s Geoff Kendrick reiterates a price target of $150,000 for Bitcoin by 2024, despite a recent 11% slide. The analyst cites anticipated investor inflows and the post-halving price surge trend. Despite concerns raised by some experts, other analysts remain bullish on Bitcoin’s future prospects.
The recent halving of Bitcoin rewards has spurred a surge in transaction fees, casting doubt on the cryptocurrency’s long-term viability. While the halving aimed to gradually reduce new Bitcoin supply, it has exacerbated the reliance on transaction fees for miners, who verify transactions on the blockchain. Increasing energy costs and competition from artificial intelligence add pressure on miners’ revenue, raising concerns about the network’s ability to maintain its security and trust.
Advocacy groups are petitioning the Swiss National Bank (SNB) to include Bitcoin in its reserves. In 2022, a report suggested that the SNB purchase 1 billion Swiss francs worth of Bitcoin monthly instead of German government bonds.
Brian Kelly, founder and CEO of Brian Kelly Capital, shared his insights on the future of Bitcoin following its recent halving on CNBC’s ‘Fast Money’.
* Global economy is experiencing growth, indicating the need for a healthy commodities allocation in portfolios.
* A potential fiscal crisis is anticipated in 2025, making gold and bitcoin essential hedges against US government spending concerns.
* China’s economic expansion, supported by manufacturing growth, contributes to global growth.
* The US debt-to-GDP ratio is projected to reach record highs, with the budget deficit being historically large even during full employment.
* Credit default swaps and outperforming emerging market debt suggest market anticipation of the 2025 fiscal crunch.
While gold is often seen as a safe haven during geopolitical turmoil, recent events suggest that cryptocurrencies may actually be a better investment. In the past decade, cryptos have surged during times of conflict, such as the COVID-19 pandemic, the 2016 US presidential election, and tensions in the Middle East. This trend is likely to continue as tensions flare between Israel and Hamas and political tensions rise in the US. The upcoming Fourth Bitcoin Halving, which reduces the supply of new BTC, is expected to further fuel the crypto bull market.
The crypto community has been abuzz with rumors regarding a proposed 1% wealth tax on substantial Bitcoin (BTC) holders. However, the proposal, highlighted in a letter shared with President Joe Biden, remains unverified. If such a policy were to be implemented, individuals and corporations holding crypto assets over $1,000 would be obligated to report their holdings annually to the Internal Revenue Service (IRS). Additionally, a 1% wealth tax would be levied on entities possessing digital assets exceeding $500,000. While some speculate that this tax could be a regulatory measure or an attempt to mitigate market manipulation by large crypto holders, the bill’s primary goal is reportedly to address wealth disparities in the United States. It’s essential to note that this bill is not officially confirmed and has been dismissed as false. Understanding crypto tax in U.S.: The Biden administration previously proposed a tax increase, including raising the capital gains tax rate to 43.4% for those earning over $1 million. This proposal sparked controversy and faced criticism from venture capital investors like Tim Draper, who raised concerns about its potential negative impact on the economy.
The U.S. stock market is poised to end a six-day losing streak on Monday, boosted by positive risk sentiment and easing geopolitical tensions. Major indices traded higher at noon in New York, with modest gains anticipated ahead of a week filled with crucial earnings reports from Visa, Tesla, Meta, Microsoft, and Alphabet. Gold prices plunged 2.5%, marking their most significant single-day decline since June 2022, while silver tumbled 5% in its worst daily performance since October 2022. Bitcoin rose above $66,000, on track for its highest close in over a week.
MicroStrategy shares are soaring on Monday following the fourth halving event of Bitcoin, which is seen as a catalyst for the cryptocurrency’s price due to decreased selling pressure. The company, which holds over 214,000 Bitcoin, believes the halving will drive up the price.
Following a successful ‘event’ over the weekend, cryptocurrency-related stocks experienced significant gains on Monday afternoon. Notable performers included MicroStrategy, Coinbase, and mining companies like Riot Platform and Hut 8 Corp.
