Hassan Ahmed, the country director of Coinbase in Singapore, has expressed optimism about Bitcoin’s prospects in 2024, citing two imminent events that could fuel a bullish trend.
In a recent chat with CNBC, Ahmed highlighted the potential for increased demand and a simultaneous reduction in supply for Bitcoin.
Spot Bitcoin ETF and Market Dynamics
Ahmed emphasized the significance of the upcoming spot Bitcoin ETF for the US markets, viewing it as a pivotal moment for the asset class. He described it as a structural shift that is gaining substantial attention and anticipation.
While acknowledging the growing buzz around the ETF approval, Ahmed anticipates a profound impact on the market dynamics. He foresees a surge in secular demand and fund inflows into Bitcoin, particularly when combined with the upcoming halving that will halve the block subsidy, effectively tightening the supply.
Navigating Regulatory Uncertainty
Addressing the lingering regulatory uncertainties in the industry, the Coinbase executive emphasized that the expected Bitcoin ETF could play a crucial role in legitimizing the asset class, especially for institutions that may have been cautious about entering the space.
Despite the ongoing regulatory evolution in the US, Ahmed highlighted that the ETF’s emergence signals a shift in perception. The SEC’s willingness to pave the way for the ETF indicates a growing acknowledgment of the demand and support for Bitcoin. According to Ahmed, this development not only destigmatizes but also legitimizes the asset class, offering a compliant avenue for asset managers and allocators to engage with Bitcoin.
In summary, Ahmed envisions a potent combination of increased demand from institutional investors and reduced supply due to the upcoming halving, setting the stage for what he believes will be a “pretty explosive” period for Bitcoin in the coming months.