Coinbase: ‘Corrections likely to buy bitcoin aggressively’

The research department of the American Coinbase expects that investors will aggressively buy any correction in bitcoin in the short term. In a new blog post, it writes that gold is a winner during this cycle due to rising economic and geopolitical concerns.

According to Coinbase, gold’s success can be explained by the threat of inflation and the expectation that the US central bank will soon start lowering interest rates.

JUST IN: Coinbase says #Bitcoin “dips are likely to be more aggressively bought” now because of new investors demanding to own digital gold 🚀 pic.twitter.com/NKgSHtJOzh

— Bitcoin Magazine (@BitcoinMagazine) April 5, 2024

Gold is the winner

“In this environment, gold is the biggest winner by hitting new all-time highs amid central bank buying, geopolitical tensions rising and concerns about a new wave of inflation,” Coinbase Institutional said.

Gold is indeed doing fantastic, but to call the precious metal “the big winner” is going a bit far. The precious metal managed to rise by 13.45 percent from the beginning of 2024, while bitcoin achieved a return of almost 65 percent during the same period.

Therefore, you cannot say that gold is the big winner, but that does not alter the fact that this increase in the normal course of events surrounding the precious metal is fantastic for investors.

Bitcoin is the digital gold

Of course, in addition to gold, Coinbase also discusses bitcoin, because the digital currency gives the exchange platform its right to exist. Looking at Bitcoin, Coinbase Institutional expects that since Bitcoin is accepted as “digital gold,” the market can expect all corrections to be aggressively bought.

“In our view, Bitcoin is increasingly accepted as a form of ‘digital gold’ and that could create demand from a new subset of investors in this market regime.

As a result, we expect corrections to be bought more aggressively versus previous cycles,” Coinbase Institutional said.

That may be the case, but do not forget that the Spot Bitcoin ETFs make an important contribution to this. They buy hundreds of millions of dollars worth of bitcoin every week, which means that there simply seems to be more demand than supply at the moment.