Bitcoin has once again been good news in 2024. The increase in its price is causing talk in the market, whether by happy investors, analysts supporting price increases or influencers with their technical analysis to know when to enter or exit.
From our side, we are going to analyze why Bitcoin is at these values, what is coming and how far it can go. To analyze the current market situation, we must take into account important events that are taking place and that have a very positive impact on the ecosystem.
The approval by the United States Securities and Exchange Commission of ETFs that track the value of Bitcoin has marked a before and after in the perception and investment dynamics within the cryptocurrency market by facilitating investors, both institutional and retail, to participate in the cryptocurrency market without the need to directly acquire the coins.
The entry on the scene of great protagonists such as Blackrock or Fidelity, by offering these ETFs, requires a solid base of bitcoins to guarantee the monitoring of the price of this cryptocurrency. This fact has led to a demand for 14,706 bitcoins in a single day by them, in a context where daily mining production does not exceed 1,059 bitcoins. This phenomenon has generated a critical imbalance between supply and demand, catalyzing a significant increase in the value of Bitcoin and, therefore, in the crypto universe as a whole.
Due to this milestone, It is anticipated that the investment flow into Bitcoin ETFs could amount to $220 billion in the coming years, raising the price of Bitcoin to highs never seen before in the future. A few days ago we saw a correction in the market, in which on average the main cryptocurrencies fell between 10% and 15%. While it is true that these numbers are high for the traditional market, it is not so high for this market, which is characterized by its volatility.
Bitcoin: correction and bullish trend
This decline that we experienced was part of a normal and even healthy market correction. It must be taken into account that Bitcoin rose 200% in one year, which is a lot for any asset. Other cryptocurrencies also experienced large increases this year, such as Solana, which increased its value by 900% in the same period. The others behaved in a similar way, experiencing increases of 100% as a base.
Despite the correction, Bitcoin continues its upward trend. This rise, which is reflected in the recent all-time high reached before the halving, could be part of what some industry experts consider as “Super Cycle”a term that refers to a period of exceptional growth, driven by the elements mentioned above that could take the price of Bitcoin to unprecedented levels, offering a promising horizon for investors willing to take on greater risks.
For investors seeking higher returns, both Bitcoin and other altcoins still present significant growth opportunities. The next Bitcoin halving, scheduled for April 2024, is emerging as an event that could significantly influence its valuation. Historically, the price of Bitcoin has shown bullish trends following these events, suggesting potential for appreciation in response to the reduced supply of new coins. Furthermore, the introduction of Bitcoin ETFs broadens the investment spectrum and reaffirms Bitcoin as a focus of renewed interest.
Given this scenario, a next “Bull Run” is expected for Bitcoin, presenting a good opportunity for those investors who are willing to take risks.
Buenbit CEO
Source: Ambito
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