Russian experts have stated that the current bull market for Bitcoin will not reach the same heights as in 2017, according to a report from the Roscongress Foundation. The report suggests that Bitcoin’s recent peak in March was driven by speculation surrounding the approval of spot Bitcoin ETFs. However, unlike in 2017, this surge in prices did not generate the same level of interest among internet users or increase accessibility for a wider range of investors. The foundation argues that the mining-based transaction protocols of the Bitcoin network hinder its full integration into the traditional financial system. Furthermore, the report highlights that Bitcoin is still perceived as a high-risk asset and is more closely correlated with stock market movements rather than gold. Despite these observations, the report acknowledges that the approval of spot Bitcoin ETFs in the US may have a positive long-term impact on Bitcoin. However, it cautions that temporary price increases are driven by speculative trading rather than genuine market demand. The authors also note the growth of stablecoins since 2017 and suggest that this has contributed to the recent bull market. In conclusion, the report indicates that the 2024 all-time-high peak for Bitcoin can be partly attributed to the increased supply of stablecoins.
