Benzinga - Cathie Wood-led Ark Invest in its latest report titled “Big Ideas 2024” said within the US banking sector early in 2023, Bitcoin (CRYPTO: BTC) has proven itself more than just a digital asset, it has become a bastion of stability.
What Happened: The report said that as regional banks faced collapse, Bitcoin’s value soared by over 40%, reaffirming its status as a hedge against counterparty risk.
Ark Invest identifies the Bitcoin halving event as a significant potential catalyst for Bitcoin in the year 2024. “Historically, each halving event has coincided with the beginnings of a bull market. Expected in April 2024, this halving will reduce bitcoin's inflation rate from ~1.8% to ~0.9%," Ark Invest said in its report.
January 11, 2024, marked a pivotal moment—the introduction of Bitcoin spot ETFs.
The report added, "Bitcoin spot ETFs are traded on major stock exchanges, allowing investors to buy and sell shares through their existing brokerage accounts, and should reduce the learning curve and operational complexities associated with direct investments in bitcoin."
Regulatory Clarity
Ark Invest's report notes that the collapses of FTX and Celsius have accelerated the push for clearer, transparent global cryptocurrency regulation. The United States is pondering a regulatory framework bill, while Europe’s MiCA (Markets in Crypto-Assets) is taking firm steps by regulating crypto wallet providers and exchanges.
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A Safe Bet for the Long Haul
Despite the often intense price swings, Bitcoin’s long-term potential remains strong. Ark Investment states the key is to focus not on “when” but “for how long” you invest. Their research shows consistent gains for those who have held Bitcoin for a minimum of five years, regardless of their entry point.
Armed with data from Glassnode, Ark’s findings elevate Bitcoin’s role in diversifying investment profiles.
Price Action: Bitcoin was trading at $41,961, down 2.26% in the last 24 hours, according to Benzinga Pro.
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