Bitcoin has fallen 0.2% over the past 24 hours to $70,504 and remained below yesterday’s high of $72,694 in early trading Tuesday. The world’s largest crypto asset has had a good few days, rising from around $66,000 Friday, and an even better year—it’s up 68% in 2024. Ether —the second largest cryptocurrency—jumped 5.9% to $3,642, while Solana fell 1.1%, Dogecoin dropped 4.9%, Cardano was up 2.4% and Shiba Inu edged 0.3% higher.
Deutsche Bank analysts Marion Laboure and Cassidy Ainsworth-Grace said there were five reasons Bitcoin prices could remain high—the approval of spot Bitcoin ETFs, expectations of Ethereum spot ETF approvals, Bitcoin’s so-called halving event, central banks starting to cut rates, and potential regulatory changes.
The halving—when the rate of new token issuance is cut in half—is likely to be the first of those catalysts and is expected to happen in the next two weeks.
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But central banks lowering borrowing costs is another catalyst on the horizon. They noted that Federal Reserve rate cuts in 2020, in response to the Covid-19 pandemic, supported the subsequent rally in cryptocurrency.
“Our economists expect central banks in the G-7 economies will pivot to a more accommodative stance over the coming months. This is expected to fuel rising risk appetite and increased market liquidity. More investors will likely seek out higher-yielding alternative assets,” they said.
Write to Callum Keown at callum.keown@barrons.com
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