Hawkish views on the potential for U.S. Federal Reserve interest rate cuts have bolstered gold among traditional investors — a fact that may lead to more demand for bitcoin, in Coinbase's opinion.

"In our view, bitcoin's increased acceptance as a form of "digital gold" could enable demand from a new subset of investors in this market regime," David Han, an institutional research analyst at the crypto exchange, wrote in a report published yesterday.

"As a result, we think dips are likely to be more aggressively bought compared to previous cycles, even as volatility persists during price discovery," he added.

Han also noted that bitcoin price volatility could be mitigated by the recent launch of spot bitcoin exchange-traded funds in the United States — and the broader access to capital …