Bitcoin BTC/USD is increasingly expected to see a rally as investors and traders alike are pumping up the volumes ahead of the rumored spot Bitcoin exchange-traded fund (ETF) approval in January.
What Happened: Swan Bitcoin CEO Cory Klippsten thinks there is a Bitcoin rally ahead, now that the "noise" of cryptocurrency tokens is clearing out with signals of the US Securities and Exchange Commission (SEC) approving the highly-anticipated Bitcoin ETF.
"You're replacing that [noise] with the largest, most-trusted financial institutions on the globe, who are going to be talking about the real signal in this space, which is Bitcoin," Klippsten told Bloomberg.
As far as the frontrunning and rally being priced in is concerned, Klippsten says that it's not entirely possible to predict this, but he notes that some of the upside is indeed priced in right now.
"It is very likely we will see another big bull market in the future… It is very likely it happens over the next couple of years, but during that, we will see some big drawdowns, too," Klippsten said, considering macroeconomic factors and the ETF approval.
According to Klippsten, Bitcoin trading volumes have seen a massive spike in the last two months, rising by 100%.
During this time, Bitcoin prices have soared by nearly 41%, helping the king of cryptocurrency hit a year-to-date high of $38,742, and its market capitalization to cross $757 billion.
See Also: Tim Draper Says Yes to Bitcoin For The Holidays, Anticipates $250,000 BTC In 2024
Klippsten also cautioned investors that ahead of the expected Bitcoin ETF approval, the narrative is being changed to call it a safe-haven and risk-off trade.
"It's a hedge against monetary inflation. It's a hedge against printing more money," he said.
Boomers And Gen X Pumping More Dollars Than Gen Z
The doubling of volumes since Sept. has helped in the recent Bitcoin rally, helping it climb from $27,000 levels to nearly $39,000 now.
However, older generations are pumping in more money into Bitcoin than Gen Z, according to Klippsten.
"When you look at it from the actual dollars in [point of view], it obviously skews towards the boomers and Gen X who actually have more money to put in," he said.
Bitcoin. Photo via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
