Table of Contents
Macro Economy Adds Attraction to Bitcoin
Opportunities and Risks for Corporate Reserves
Regulations Gradually Clear
Altcoin ETF
The report (released before the deterioration of the situation in the Middle East) pointed out that after a slight contraction in the first quarter GDP of the United States and the impact of trade frictions, recent data shows that economic momentum is accelerating. The Atlanta Federal Reserve’s GDPNow indicator was significantly raised to 3.8% at the beginning of June, indicating that market concerns about the economy are gradually easing. In addition, signals from the Federal Reserve about possible rate cuts, as well as the moderate turn in trade policies between China and the United States, have also shifted market sentiment to optimism, and investors’ acceptance of risk assets has increased.
Against this background, Bitcoin, as a role in resisting inflation and hedging assets, has once again attracted attention. The report mentioned that the decline in the dominance of the US dollar and long-term global inflationary pressures will continue to strengthen the store of value function of Bitcoin. Even though the yields of long-term US government bonds are still high, the attractiveness of Bitcoin has gradually surpassed traditional assets.
Furthermore, with the relaxation of US accounting standards by 2024, more and more listed companies are beginning to include Bitcoin and other cryptocurrencies on their balance sheets. However, Coinbase also warned that with a large number of companies entering the market using leverage tools such as convertible bonds, if prices fluctuate sharply in the future or refinancing cannot be smooth, they may face selling pressure and trigger systemic risks.
On the other hand, the report emphasizes that the development of regulations will be a key driver for further maturity of the market. Recently, the US Senate has passed the stablecoin bill “GENIUS Act” and sent it to the House of Representatives for consideration. Another legislation covering the overall regulatory framework for cryptocurrency assets, the “CLARITY Act,” is also in the legislative process, aiming to clarify the jurisdiction boundaries of the SEC and CFTC. If successfully passed, it will bring a high degree of certainty to market participants.
Coinbase also pointed out that the US Securities and Exchange Commission is currently reviewing over 80 cryptocurrency ETF applications, including innovative products involving multi-currency allocations, staking rewards, and altcoin assets. Some of the review results are expected to be announced as early as July, with the rest expected to be disclosed by October. These are also positive developments worth paying attention to.
