Bitcoin's role as 'digital gold' may bring continued demand as ETFs ease volatility

PANews April 7 news, according to The Block, the Federal Reserve’s hawkish view on interest rate cuts has strengthened gold’s position among traditional investors – a fact that, according to Coinbase, may trigger more demand for Bitcoin. David Han, an institutional research analyst at Coinbase, wrote in a report released yesterday: “In our view, the increasing acceptance of Bitcoin as a kind of ‘digital gold’ may bring new investors into this market system. The crowd increases demand. As a result, we believe there may be more aggressive buying on price pullbacks than in previous cycles, even if volatility persists during price discovery.”

David Han also pointed out that the recent launch of Bitcoin spot ETFs in the United States and the wider access to capital they bring may help alleviate the volatility of Bitcoin prices. He wrote in the report: “In our view, the capital released by ETFs may represent the most fundamental change in market structure between the 2020-2021 cycle and today. The release of these capitals, coupled with the upcoming Bitcoin halving ( (expected to occur on April 20-21, depending on changes in the network hash rate) and other positive factors, our view throughout the second quarter remains generally optimistic." The Bitcoin halving is expected to Occurs approximately 14 days later.