Bitcoin hits a new all-time high

Tue, 26 Mar 2024 11:52:33 +0000

Bitcoin had been hovering around the $70,000 level on March 12 but surged later, surpassing its previous all-time highs. On March 14, 2024, it set a new record of $73,750, with a market capitalization reaching $1.44 trillion the highest level ever, surpassing the level of November 2021. Both Bitcoin and the range of the 100 largest currencies have grown by about 70% this year.
In this article I will express my thoughts over how Bitcoin hit its ATH, the aftermath as well as how altcoins will be affected because of this.

How did this happen?

A few weeks ago, the US Securities and Exchange Commission approved the first exchange-traded fund (ETF) in bitcoin spot, paving the way for the upward trend. Additionally, investors anticipate the upcoming “halving,” which occurs every four years and halves the supply of new cryptocurrencies, further bolstering its price. The next halving is anticipated around mid-April.

The Aftermath

Bitcoin’s rally is producing around 1,500 new “millionaire wallets” every day, according to cryptocurrency analytics firm Kaiko Research. That’s still lower than the rate of millionaire wallets created during Bitcoin’s bull run in 2021, however, when more than 4,000 wallets a day reached the $1 million mark.
Monetary policy developments strongly influence the overall market, fostering investment “euphoria” and increasing risk appetite. Since the beginning of the year, Bitcoin has surged by over 70%, propelling the entire market upwards. Smaller tokens like Ether, Solana, and Avalanche are experiencing gains of 1%, driven by Bitcoin’s momentum. Data from CoinMarketCap shows that the global cryptocurrency market currently values at $2.68 trillion, with an increase of almost 1.6% in the last twenty-four hours.

How will the Altcoins be affected?

In the following month, Bitcoin undergoes an event known as halving, which reduces the supply of new Bitcoin by half. When Bitcoin’s daily production halves, the probability of its price increasing rises. For instance, if the total production of copper halved while demand stayed constant, the price of copper would rise.

The end of the bull cycle

Whenever there is a sudden explosion in Bitcoin, the next question arises about when the collapse will come. In its previous outbursts, including 2013, 2017, and 2021, the digital currency consistently broke its all-time highs, followed by sharp declines.

Previous Bitcoin crashes stemmed from various events: regulatory crackdowns, transaction violations, product crashes, and burst bubbles. The history of Bitcoin seems to repeat itself in a perpetual cycle of boom and bust, drawing many back to the currency every few years.

Conclusion

Bitcoin is making history, reaching a new record and changing the game in the stock market with the approval of ETFs. ETF demand, tight supply, and expectations of looser monetary policy fuel a bullish mood in cryptocurrencies. The upcoming halving in Bitcoin makes this a good time to consider entry into several altcoins (after careful study), expected to thrive this year.

However, one should be mindful of the potential decline that may follow this surge, as seen in previous instances.

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Reference List

Bitcoin: Θα επαναληφθεί η ιστορία;
Bitcoin reaches new all-time high, surpasses Silver in market cap
TOP 13 Altcoins to 10X By Bitcoin Halving

The post Bitcoin hits a new all-time high appeared first on HMHM FINANCIERA SICAV SA.

Is it the right time to buy Bitcoin?

Wed, 13 Mar 2024 11:43:55 +0000

This post may contain affiliate links, which means I may receive a small commission, at no cost to you, if you make a purchase through a link.

Before, bitcoin has made a “comeback.” Following a low point in 2019, prices experienced a strong recovery throughout the first year after the outbreak of the Covid-19 epidemic, but then they experienced another sharp decline in the early months of 2021. Later that year, it recovered, but with the historic FTX crisis in 2022, prices fell.

The majority of the current price increase has occurred after January 10, when the Commission on Securities and Exchanges permitted the sale of spot traded funds (ETFs), allowing well-known companies like Fidelity, Invesco, and BlackRock to consumers. And when regular investors wonder if they should include cryptocurrencies in their portfolios, some advisors are sounding a little more upbeat.

Changing Scenery

Many traditional financial advisors, portfolio managers, and financial researchers have quickly written off cryptocurrency due to its dangers and volatility. That seems to be changing, if only a little. Money managers have witnessed millions of dollars being made on Bitcoin by both professional Wall Street traders and ordinary investors, despite the fact that they do not believe that customers should follow a “diamond hands” approach mindlessly. And some do believe that a little amount of Bitcoin might fit into the typical investor’s portfolio if managed properly.

The director of portfolio research at Northern Trust Wealth Management Peter Mladina stated, “People in a market that’s competitive are selling it and they see potential in it for whatever reason, so we need to respect that.”

The suggested portfolio of Northern Trust does not include Bitcoin. Additionally, Mladina refutes some widely accepted myths regarding cryptocurrencies. He contends that it falls short of meeting all the requirements to be considered a currency and that its volatility renders it an inadequate store of value.

Although he advises against investing a significant portion of a portfolio in Bitcoin, he did say that “maybe for certain individuals there might be a small allocation.”

According to recent research, 2024 will see Bitcoin hit a new all-time high.

According to a recent report, Bitcoin (BTC) is predicted to establish a record-breaking high of $88,000 (€82,000) during the year before settling at roughly $77,000 (€71,000) at the end of 2024.

At the moment, the cryptocurrency is valued at about $43,000.

The UK fintech company Finder conducted a study on the performance of Bitcoin through 2030 based on the professional price forecasts of forty experts in the field.

The research revealed that analysts expect the typical peak price of Bitcoin to reach $87,875 in 2024, with some forecasting as high as $200,000. Conversely, they anticipate the typical lowest price of Bitcoin by the end of 2024 to be $35,734, with projections as low as $20,000.

Is today the ideal time to invest $1,000 in Bitcoin?

Think about the following before purchasing Bitcoin stock:

Bitcoin was not one of the ten stocks that the Motley Fool Stock Advisor analysis team recently named as the best ones for investors to purchase right now. In the upcoming years, the ten equities which received the cut might yield enormous profits.

Stock Advisor gives investors a clear road map for success that includes monthly stock recommendations, regular analyst updates, and advice on constructing a portfolio. Since 2002, the return on the S&P 500 has been more than tripled by the Stock Advisor service.

What might stimulate growth for Bitcoin in 2024?

Nearly fifty percent of the specialists Finder polled predicted a price rise following a purported “BTC half event” in April 2024.

During a “halving event,” the mining reward for Bitcoin transactions reduces by 50% annually. Currently, individuals validating transactions receive 6.25 bitcoins, but this number could drop to 3.125. Halving events decrease coin’s supply, leading to price increases. Six months after the split event, approximately half of the 40 surveyed panelists (47%) anticipate Bitcoin hitting a new all-time high.

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