Bitcoin has come a long way
In late 2009 before it was really easy to track Bitcoin prices it had been traded for $0.00099 (or one-tenth of a cent). It just passed $44,000 for the first time since it’s large decline in 2022 and it looks like the bull run has begun! There have always been events like the halving that have set off a Bitcoin bull run and the best news is the entire industry tends to track. There are a few historic moments on the horizon for the crypto industry as well as some that are currently in process (Ripple vs SEC) that could set some new highs next year. Here’s what could really set fire to a new crypto bull run.
The Crypto Catalysts
A lot of the cryptocurrency market is based on supply, market demand, competing cryptocurrencies, and investor sentiment. Bitcoin is no different and so a lot of the catalysts analysts are predicting will affect the industry are just that – predictions.
1) Bitcoin going mainstream: Earlier Grayscale had the rejection of their application to convert their Bitcoin Trust to Bitcoin ETF overturned. The time has now come where these ETFs will start seeing approval by the SEC. While there are still some hurdles many are optimistic (including Grayscales CEO) that this type of spot ETF is a “matter of if not when.” This would funnel billions into the market providing more access to institutional and retail investors. This is also most likely one of the reasons Bitcoin is seeing the highest institutional demand since it’s conception.
2) The first crypto designated as a “non-security”: Ripple had a massive win this year over the SEC in a 3 year long legal battle where the judge delivered an answer on retail sales of XRP was not registered securities. This was the first time a win like this was delivered to a cryptocurrency challenging SECs regulation over the industry and the sound of our justice system working. The institutional sales conversation is going to a jury trial in April of 2024, but there are hopes of settlement which could balloon XRP and the market.
3) The next Bitcoin halving: Also known as the “halvening,” where the reward to miners of Bitcoin cuts by 50% making the new amount of Bitcoin hitting the network drop. You can learn more about the halving here. What’s also wildly convenient is that the halving is expected in April 2024 which also happens to be the beginning of the Ripple vs SEC jury trial.
I’m still investing in this and HODLing preparing for the coming year. While I don’t know my long term play here, I do have exit numbers on my crypto holdings which would funnel right back into investments like my business, the stock market, and real estate. I’ve shared my thoughts before on how this crypto world is risky and that it can provide life changing wealth on the right breaks. Am I gambling? Sure. Is the stock market gambling? Yeah if you think about it. There are risks to everything and by reading the market, trying to do specific analysis on the market, and staying somewhat in tune there could be a good chance to win. That’s what it’s all about – setting up some good opportunities to win.
Keep your eye on the market, do you due diligence, and have an exit strategy.