ETFs Easing Bitcoin’s Volatility: The Rise of Crypto as Digital Gold, Explains Coinbase

user avatar

by Giorgi Kostiuk

3 years ago

Made with AI

Key Points

Bitcoin is gaining recognition as a form of 'digital gold' which may attract a new group of investors. The recent launch of spot Bitcoin ETFs in the U.S. could potentially decrease Bitcoin's price volatility.

The likelihood of U.S. Federal Reserve interest rate cuts has bolstered gold's appeal to traditional investors. This trend could lead to increased demand for Bitcoin as it gains more acceptance as 'digital gold.'

The Role of Bitcoin as 'Digital Gold'

According to David Han, an institutional research analyst at a major crypto exchange, the acceptance of Bitcoin as 'digital gold' could draw in a different set of investors. This surge in demand may result in more aggressive buying during market downturns, despite the possibility of volatility.

Impact of Bitcoin ETFs

Han also pointed out the potential influence of Bitcoin ETFs in lessening Bitcoin's price volatility. The recent launch of spot Bitcoin ETFs in the U.S. could release a substantial amount of capital, fundamentally transforming the market landscape. Coupled with other positive factors such as the impending Bitcoin halving, the outlook for Q2 looks optimistic.

Han and another analyst, David Duong, have suggested that experienced traders may have already factored in the impact of the Bitcoin halving. Nevertheless, the common anticipation of a price surge related to the halving could still drive prices upward. The Bitcoin halving is expected to occur in around 14 days.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

BotPsy Sets New Standards in AI Performance Benchmarks

Tether's QVAC BotPsy has achieved impressive scores in AI performance benchmarks, scoring 440 on BFCL v4 and 587 on ACEBench, surpassing larger models and demonstrating the potential of smaller AI models.

user avatarMiguel Rodriguez

Tether Launches Innovative AI Model QVAC BotPsy

Tether introduces QVAC BotPsy, an AI model with 800 million parameters that excels in performing everyday tasks on personal devices.

user avatarRajesh Kumar

CoreWeave's Strong Q3 Performance Boosts AI Sector Sentiment

CoreWeave's strong Q3 results have increased investor sentiment in the AI sector, reporting $366 million in revenue, a 168% year-over-year increase, and raised full-year guidance.

user avatarLuis Flores

Deutsche Bank Launches Crypto Custody Service for Institutions

Deutsche Bank has officially launched its crypto custody service for institutional and corporate clients in Europe.

user avatarArif Mukhtar

Yana Prikhodchenko Takes the Helm as CEO of Phase

Yana Prikhodchenko has been appointed as cofounder and CEO of Phase, a technology company focused on the AI agent economy.

user avatarDavid Robinson

Phase Unveils Layer 1 Blockchain Mainnet and AI Agent Services

Phase has launched its Layer 1 blockchain mainnet and AI agent services, enabling autonomous operations for AI agents.

user avatarMaria Gutierrez

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.