As Bitcoin continues to attract the attention of investors worldwide, a new report from broker Canaccord Genuity highlights the potential for further bullish momentum in the cryptocurrency market following the upcoming halving event.
Canaccord Report Says Bitcoin Halving Could Boost ETF Momentum
According to the report released today, history suggests that an increase in Bitcoin and crypto market activity may be on the horizon in the months following the halving.
Canaccord analysts led by Michael Graham attribute the over 60% rise in Bitcoin (BTC) in the first quarter to several key factors, including the approval of spot exchange-traded funds (ETFs), the upcoming reward halving, and increased risk appetite in financial markets.
“While the macro outlook and timing of potential interest rate cuts remain uncertain, the upcoming halving event could contribute to significant upside for Bitcoin,” the report states.
Canaccord highlights the importance of the halving, which occurs approximately every four years and involves reducing miner rewards by 50%, thus reducing the Bitcoin supply. The next halving is expected to occur on April 21.
On the other hand, the report underlines that it is a positive development that the Securities and Exchange Commission (SEC) approved 11 US spot Bitcoin ETFs in the first quarter.
Canaccord predicts that this approval will continue to gain momentum, especially as individual investors look to add cryptocurrency exposure to Individual Retirement Accounts (IRAs) and other tax-advantaged accounts.
*This is not investment advice.
