Paul Brody, a well-known individual within the blockchain community and the current Global Blockchain Leader at Ernst & Young (EY), has recently provided insights into the growing interest in cryptocurrencies, particularly #bitcoin , which has gained significant attention. During a recent interview on CNBC, Brody noted the increased level of interest, namely from family offices.
Family offices are at the forefront of driving change.
Brody (year) asserts that family offices, entities responsible for overseeing the substantial assets of rich families, are progressively expanding the range of their investment portfolios to include cryptocurrencies. This observation is not altogether unexpected, considering the rapid ascent of Bitcoin and its potential as a safeguard against inflation and economic instability.
According to Brody, these prominent corporations, which possess assets worth more than 200 trillion dollars, are now in a state of anticipation for regulatory certainty. Specifically, they are awaiting the approval of a Bitcoin Exchange-Traded Fund (ETF) by the United States Securities and Exchange Commission (SEC) before making substantial resource allocations.
Bitcoin exhibits unique differences from traditional assets such as gold, yet being subject to comparisons. Brody emphasizes a distinctive characteristic of Bitcoin, namely, its price does not lead to an escalation in its supply. In contrast, the issue of new Bitcoin gradually diminishes over time as a result of halving occurrences.
This characteristic renders the price of this property very inflexible, particularly when compared to other assets commonly employed as safeguards against inflation.
When examining the individuals who engage in the purchase of Bitcoin, it becomes evident that they perceive it primarily as an asset. The individuals in question are not perceiving it as a viable means of conducting financial transactions.
According to Brody, Ethereum, a prominent cryptocurrency, is mostly sought after for its practicality as a computational platform, namely for commercial transactions and decentralized finance (DeFi) solutions.
Is Bitcoin Expected to Reach $40,000?
To far, Bitcoin has had a bullish trajectory, with a notable surge of around 10% in value over the previous week, accompanied by a 4.7% gain over the prior 24-hour period. The latest spike in value has caused Bitcoin's trading price to surpass the $31,000 threshold, reaching a recent high of $31,824.
Upon analyzing the chart of the asset during the 1-day timeframe, it can be inferred that BTC exhibits a favorable outlook for potential further increases in value. The asset has lately accessed an order block, indicating the potential for a reversal towards an upward trend, perhaps hitting a significant peak.
Moreover, taking into account the significant institutional demand for Bitcoin (BTC) as disclosed by Brody, together with the likely authorization of a spot Bitcoin exchange-traded fund (ETF), it appears that a surge towards the $40,000 threshold is imminent.
Moreover, while contemplating the future of the financial environment, Brody posits that conventional fiat currencies will persist in maintaining their dominance.
Nevertheless, given the current discourse around Central Bank Digital Currencies (CBDCs) and the increasing acceptance of payment stablecoins, it appears that the cryptocurrency domain is potentially on the brink of transformation.
