VanEck predicts that Bitcoin could potentially become a global reserve currency by 2050, with a price estimation of $2.9 million. This projection is based on declining trust in traditional reserve assets and the increasing demand for alternative assets like Bitcoin. The resolution of Bitcoin’s scalability issues with Layer-2 solutions is expected to enhance its efficiency. VanEck anticipates that Bitcoin could settle 10% of international trade and 5% of domestic transactions by 2050, with central banks potentially holding 2.5% of their assets in Bitcoin. This shift would occur as traditional currencies lose market share due to weakening economic fundamentals.
According to The ETF Store, cryptocurrency exchange-traded funds (ETFs) have dominated the top 25 ETF launches in 2024, with thirteen of them being related to Bitcoin and Ethereum. Notably, spot Bitcoin ETFs were the most popular among the nearly 400 new launches this year. The total net assets of Bitcoin and Ethereum ETFs have exceeded $60 billion, showcasing the increasing confidence and interest in digital currencies among investors. This surge in investment could potentially lead to higher prices for Bitcoin and Ethereum as more institutional and non-institutional investors gain exposure to these assets.
Metaplanet has partnered with Japanese investment firm SBI VC Trade to offer Bitcoin custody solutions. This collaboration allows Metaplanet to utilize Bitcoin as collateral for financial leveraging, thereby enhancing its financing capabilities. By adding 360.4 BTC (worth $21 million on August 20) to hedge against yen volatility, Metaplanet aims to expand its financial services similar to MicroStrategy’s Bitcoin investment model. SBI VC Trade, a subsidiary of the $185 billion SBI Holdings, operates a registered crypto exchange in Japan. This partnership with a major financial player signifies a positive signal for Bitcoin investor sentiment.
Bitcoin’s bullish outlook is supported by looser Federal Reserve policies and global macroeconomic trends. Analysts from ETC Group believe that Bitcoin may benefit from potential U.S. monetary policy adjustments, such as an interest rate cut, which could strengthen its position in the market. Despite recent dips in market sentiment due to factors like U.S. recession fears and a stronger yen, expectations of a Fed rate cut have reignited optimism. Lower interest rates often drive investors towards higher-risk assets like Bitcoin, making it more appealing in the current economic landscape.
The current price of Bitcoin faces resistance at $57,200, with sellers currently in control as the price hovers around $56,718. The breach of the key support level at $57,207 indicates the dominance of sellers, with the 50-period EMA acting as strong resistance at $59,169. The Relative Strength Index (RSI) suggests that Bitcoin is approaching oversold territory, potentially signaling a relief bounce. Immediate support levels lie at $55,085 and $53,228, while bullish momentum would need to breach resistance levels at $59,169 and $61,192 to shift the trend. Until then, the trend remains bearish.
As Bitcoin adoption continues to grow, the newly launched platform Crypto All-Stars has garnered significant interest, raising over $945,000 in its presale out of a $1,141,838 target. Leveraging Bitcoin’s influence, Crypto All-Stars offers innovative staking opportunities by integrating it with popular meme coins. The platform appeals to investors by providing unique staking options for both Bitcoin and meme coin holders. With a strategic token allocation aimed at long-term growth, Crypto All-Stars presents an enticing opportunity for those looking to maximize their investments.
