Analysts at crypto bank Sygnum published report that stated that the price of Bitcoin is rising due to the growing influx of institutional capital into the market.
Experts say a so-called “demand shock” could form next year as governments and pension funds seek to replenish their balance sheets with the first cryptocurrency.
Sygnum emphasizes that for every $1 billion of inflow into spot bitcoin ETF pushes the Bitcoin rate up by at least 3-6%. According to analysts, if the US passes laws supporting digital assets and develops rules that remove the regulatory stranglehold on companies, then we should expect an increase in the cost of digital gold.
Thanks to Bitcoin's unique features, such as its decentralized nature, freedom from government control and immunity to inflation, the value, as well as the price, of the first cryptocurrency will continue to grow, the bank's analysts believe.
If the US or another country accepts Bitcoin into a strategic reserve, the boldest forecasts may come true, and the coin's volatility will decrease significantly. This, in turn, will attract even more capital to the cryptocurrency market, experts said.
