The current Bitcoin bull market is viewed by Russian experts as falling short of the highs reached in 2017. According to a report from the Roscongress Foundation, the new all-time-high peak reached in March was attributed to a “speculative game” playing out amidst the approval of spot Bitcoin ETFs. Despite this peak, the excitement surrounding Bitcoin has not been as intense as seen in 2017, as indicated by the level of internet searches related to cryptocurrencies, which remained below peak values. The report suggested that only half as many people worldwide were searching for BTC and crypto-related topics compared to 2017.
Experts also noted that the approval of spot Bitcoin ETFs was expected to make cryptocurrency investments more accessible to a wider range of people. However, the report stated that evidence has yet to show a significant increase in accessibility due to the current obstacles faced by crypto assets in terms of full integration into the traditional financial system. The authors also highlighted that most investors still perceive Bitcoin as a high-risk asset, similar to tech stocks, and noted that Bitcoin is more strongly correlated with stock market movements than with assets like gold, positioning it as a classic high-risk speculative asset.
The report also discussed the weak reaction in the Bitcoin market to the April halving event, attributing the behavior of the asset to the overall willingness of financial market participants to take on risks. Despite the mixed outlook on Bitcoin and the impact of spot Bitcoin ETF approval, the authors expressed confidence that the emergence of these ETFs would eventually make investing in cryptocurrency more accessible to all market participants. They acknowledged that temporary price rises were driven by speculative play from traders looking to capitalize on ETF approvals, and offered a wide range of Bitcoin price forecasts for the end of the year, with an average maximum forecast of $121,764 and an average floor of $50,138.
The report also highlighted the influence of stablecoins on Bitcoin prices, noting a growth in the capitalization of stablecoins since 2017. This growth has contributed to Bitcoin’s bull market in both 2021 and 2024, with the authors attributing the 2024 all-time-high peak partially to a restoration of the supply of stablecoins. Additionally, Russian experts predicted a 20-40% growth in BTC and altcoin mining by the end of the year, indicating a positive outlook for the industry.
In conclusion, while the current Bitcoin bull market may not have reached the same heights as seen in 2017, experts remain optimistic about the long-term impact of spot Bitcoin ETF approval on accessibility to cryptocurrency investments. The report highlighted the challenges faced by crypto assets in integrating into the traditional financial system and emphasized the perception of Bitcoin as a high-risk speculative asset. The influence of stablecoins on Bitcoin prices was also discussed, with experts linking the recent all-time-high peak in 2024 to the renewed supply of stablecoins. Overall, the outlook for BTC and altcoin mining remains positive, with expectations of growth in the industry before the end of the year.
