The current Bitcoin bull market is seen as falling short of the highs achieved in 2017 by Russian experts, according to a report from the Roscongress Foundation. The report suggests that BTC’s new all-time high peak in March of this year was driven by a speculative game against the backdrop of spot Bitcoin ETF approvals. However, the sudden growth in Bitcoin prices in March failed to create a stir similar to the situation at the end of 2017. Internet search engine queries related to cryptocurrencies have also remained below peak values.
Experts noted that analysts had claimed that spot Bitcoin ETFs would make cryptocurrency investments more accessible to a wider range of people. However, evidence suggests that this accessibility has not yet occurred due to the obstacles presented by the mining-based transaction protocols of the Bitcoin network. The authors of the report mentioned that cryptoassets are still not a perfect fit for full integration into the traditional financial system, mainly due to the fact that they are not suitable for offsetting within that system.
Market data shows that most investors still perceive Bitcoin as a high-risk asset similar to tech stocks, and Bitcoin is more strongly correlated with stock market movements rather than with assets like gold. The authors of the report highlighted a weak reaction in the Bitcoin market to the April halving event, stating that the behavior of assets is increasingly driven by the general willingness of financial market participants to take on risks. Additionally, the report mentioned that the price forecasts for Bitcoin at the end of the year vary widely, with an average maximum forecast of $121,764 and an average floor of $50,138.
The report suggested that the emergence of spot Bitcoin ETFs will make investing in cryptocurrency more accessible in the long run. However, temporary price rises are seen as speculative plays by traders looking to capitalize on ETF approvals in Washington. The authors also discussed the influence of stablecoins on Bitcoin prices, noting a growth in the capitalization of stablecoins since 2017. They attributed the 2021 and 2024 Bitcoin bull markets to the increase in the supply of stablecoins and the shift of pricing to virtual spaces. The experts concluded that the 2024 all-time high peak was partially due to a restoration of the supply of stablecoins.
In addition to the analysis of Bitcoin and crypto markets, the report mentioned that BTC and altcoin mining are expected to grow by 20-40% before the end of the year, according to Russian experts. Overall, while the current Bitcoin bull market may not have reached the heights of 2017, experts believe that the emergence of spot Bitcoin ETFs will eventually make cryptocurrency investments more accessible to all market participants in the long run. However, the short-term price fluctuations are seen as speculative plays rather than reflective of broader market trends.
