Wall Street Analyst Defies Post-ETF Dip: “Bitcoin Still a Bullish Bet in 2024
Despite Bitcoin’s recent price slump following the highly anticipated launch of Bitcoin ETFs, some Wall Street analysts remain optimistic about the digital asset’s long-term prospects. Markus Thielen, head of research at 10x Research, argues that the current dip is a temporary blip and urges investors not to turn “bearish” on Bitcoin just yet.
“While the post-ETF drop might seem concerning,” Thielen stated in a recent note, “it’s crucial to remember that this is likely a short-term phenomenon.” He highlights several factors supporting his bullish outlook:
1. Macroeconomic Tailwinds: Thielen believes the broader economic environment remains favorable for Bitcoin in 2024. Inflationary pressures and potential recessions could drive investors towards alternative assets like Bitcoin, seeking its perceived hedge against inflation and store of value properties.
2. Constructive Fiscal Policy: The upcoming US election cycle, according to Thielen, could lead to increased government spending, potentially boosting asset prices across the board, including Bitcoin. He expects a “constructive fiscal response” that would ultimately benefit Bitcoin’s price trajectory.
3. Buying Opportunity: The recent dip presents a buying opportunity for long-term investors, according to Thielen. He suggests using any further price drops as an entry point, reiterating his earlier prediction of a correction back to $36,000-$38,000, which has already occurred.
Thielen’s stance contrasts with some analysts who expressed concerns about the sustainability of Bitcoin’s rally post-ETF launch. Some argue that the initial excitement has subsided, leading to profit-taking and a return to price volatility. Additionally, regulatory uncertainties and ongoing debates about Bitcoin’s energy consumption continue to cast shadows over its future.
However, Thielen emphasizes that the long-term adoption of Bitcoin and its underlying blockchain technology is still in its early stages. He points to the increasing institutional interest, growing infrastructure development, and expanding use cases for Bitcoin as positive indicators for the future.
“The time to be bearish was in early January,” Thielen concluded, referring to his previous call for a correction. “Now, with Bitcoin hovering around $42,000, we see this as a potential buying opportunity in light of the strong macro tailwinds and positive developments within the Bitcoin ecosystem.”
Whether Thielen’s bullish prediction materializes remains to be seen. However, his contrarian perspective highlights the ongoing debate surrounding Bitcoin’s future and underscores the importance of individual research and due diligence before making any investment decisions.
