The world of Bitcoin and cryptocurrency has been tough lately. Frankly, there is a depressing recession. It doesn’t look like it will pass. Inflation data and FOMC minutes will draw attention as critical developments in the United States. All of this affects the path of BTC. At this point, the famous company Matrixport shared an important report. Let’s look at the details
Important factors for Bitcoin investors
All eyes are on critical inflation data. Also in the publication of the Federal Open Market Committee (FOMC) minutes from the USA. That’s why this week is of great importance for Bitcoin and the broader cryptocurrency market.
According to Martrixport’s latest Bitcoin report, Bitcoin (BTC) is currently at $27,560. It represents a 1.1% decrease over the last 24 hours.
Bitcoin as a digital store of value
Matrixport, a leading financial platform, highlights the deep connection between Bitcoin and gold. It also positions both as stores of value. As reported by Kriptokoin.com, the rise in demand for Bitcoin as a digital store of value can be attributed to its growing popularity. Matrixport Research Manager Markus Thielen draws attention to the market value of Bitcoin, which is currently $ 540 billion. Accordingly, he underlines that physical gold constitutes 10.8% of the market value.
Thielen claims that Bitcoin has a distinct advantage over gold. Additionally, Thielen suggests that the Securities and Exchange Commission’s (SEC) potential approval of a spot Bitcoin exchange-traded fund (ETF) could inject $20-30 billion into Bitcoin’s market value.
Thielen’s other highlights
At this point, Thielen points out that storing assets as gold is not only obsolete in the digital age. It also points out that it imposes significant restrictions on crossing borders. Bitcoin provides a solution to this situation. BTC allows value to move quickly and relatively inconspicuously across borders.
Therefore, given the current state of technological developments, Bitcoin’s role as a store of value is similar to gold. Additionally, BTC is considered a speculative financial asset. Moreover, a possible SEC approval of a spot Bitcoin ETF would result in an inflow of $20 to $30 billion into BTC. This will potentially trigger a major rally for Bitcoin.
Predicting Bitcoin’s trajectory
Investors are eagerly awaiting the outcome of this important week. Additionally, Bitcoin’s path remains unclear. The interplay between Bitcoin’s store of value, its comparison with gold, and potential regulatory developments will likely influence the cryptocurrency’s future trajectory. Bitcoin investors are watching the evolving landscape carefully, prepared for potential events that will shape the market in the coming days.
