New Fidelity Digital Assets Report Updates Bitcoin Forecast to ‘Neutral’
Fidelity Digital Assets’ (FDA) latest quarterly report delves into the bitcoin and ethereum markets in Q1 2024, offering insights into their performances and future trends.
The report notes bitcoin’s 64% increase by mid-March and ethereum’s 74%, with market strength bolstered by approved spot bitcoin exchange-traded products (ETPs). FDA researchers attribute some of bitcoin’s recent supply decrease to miners taking profits, creating selling pressure. On the ethereum front, the successful Deneb-Cancun upgrade boosted ether’s fundamentals, leading to a 55% price surge in Q1. The report highlights the Ethereum network’s deflationary status post-Merge and an increase in validator numbers, signaling long-term health.
FDA’s analysis shifts bitcoin’s outlook from “positive” to “neutral,” citing fair value and ongoing market dynamics. Looking ahead, FDA advises cautious optimism due to potential selling pressures and rising staking activities impacting market dynamics.
Clever Robot News Desk 25th April 2024
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