Coinbase is optimistic about the variables that could drive Bitcoin price to new highs

According to a new report from the Coinbase exchange, ETFs can mitigate Bitcoin price volatility (BTC) This increases the adoption of new investors. The report also states that the Bitcoin halving date may not be perfect.

Coinbase is optimistic about the variables that could drive Bitcoin price to new highs

After 3 months of positive performance on the cryptocurrency market thanks to the success of... Bitcoin ETFThe cryptocurrency market and Bitcoin price are eagerly awaiting the halving as another indicator of upcoming market highs.

The American exchange Coinbase announced in its latest report that Bitcoin ETFs are helping to change the industry. While investors can now buy more aggressively during downturns. As a result, they say, volatility could be reduced in the future. The report stated:

“The growing acceptance of Bitcoin as a form of “digital gold” could enable demand from a new subset of investors in this market system. As a result, we believe dips will likely be purchased more aggressively than in previous cycles. Access can help Bitcoin. Broader access to capital also helps mitigate volatility.

In addition to standard flows, Bitcoin ETFs have a deeper impact on Bitcoin. For this reason, an influx of new entrants can reduce volatility by ensuring competition for supply occurs in a more orderly and consistent manner.

👈Read more: How to manage the fall of Bitcoin in a bull market?

If the industry is waiting for the next bullish event, the halving is clearly the next step to watch closely. According to Coinbase, this halving “could be a catalyst for higher prices.” Historically, Bitcoin halvings have been followed by an increase in the price of Bitcoin. This is why the community is looking forward to this important event.

The crypto community is waiting for the halving to confirm the upward trend of cryptocurrencies... Will it happen?

The halving is coming Bitcoin (BTC)While the cryptocurrency market is currently catching its breath. However, according to Coinbase, mining rewards are expected to be reduced at an all-time low.

However, the Coinbase report believes that this halving will face a period of weakness for cryptocurrencies. Additionally, purchases of Bitcoin, Ethereum and other altcoins reached their lowest levels this month, during 2024. While the June-September period is historically quiet for the largest cryptocurrency:

“Bitcoin's halving, scheduled for April 20 or 21, could be a catalyst for higher prices, but it will have to adapt to a generally slower period for markets for cryptocurrencies and other assets at risk."

👈Read more: Trading strategies in an uptrend or how to buy cryptocurrencies in the event of an increase?

As Bitcoin began to rise again, quickly surpassing $72,000, thanks to the entry of new investors and an "IPO", the exchange Coinbase estimates that after the halving, the price of Bitcoin could fall in a significative way. Due to the historic summer hibernation of the market.

The price of BTC has actually been moving in a narrow range over the past few days, Coinbase points out. Incoming flows Exchange-traded funds for Bitcoin have also slowed. However, the report highlights several factors that could help Bitcoin avoid summer hibernation.