The cryptocurrency market is experiencing an exciting resurgence, with Bitcoin leading the charge. Entering 2024, Bitcoin’s value has soared by 150%, positioning it around $70,000 in late May. As interest in digital asset investment solutions grows, industry experts anticipate this bull run could continue into 2025, with projections indicating a potential value of $100,000 by the year’s end.
But what’s fueling this renewed momentum?
ETF Approvals Boost Market Interest
One key driver of Bitcoin’s rising value is the recent approval of spot ETFs by the SEC, a landmark decision for the crypto world. Although Bitcoin ETFs have been in development since 2013, spot ETFs—which directly hold Bitcoin as assets rather than futures contracts—only received approval in early 2024.
Spot ETFs simplify crypto investments, attracting retail investors and wealth managers who manage traditional portfolios like 401(k)s or IRAs. BlackRock and Fidelity have emerged as dominant players, holding $15 billion and $9 billion in Bitcoin assets, respectively. The accessibility of ETFs allows investors to participate in Bitcoin’s growth without navigating complex crypto exchanges, thus broadening Bitcoin’s appeal.
Halving Event on the Horizon
Bitcoin’s halving event, another significant influence, is set to take place in April 2024. Occurring roughly every four years, halving events reduce Bitcoin mining rewards by half, effectively cutting the supply of new Bitcoin entering circulation. Historically, these events generate demand by reducing supply, potentially driving price increases post-halving.
In previous halvings, Bitcoin saw gains of 51% and 83% in the six months following the event. This pattern fuels expectations that the April halving could spark a similar trend, with nearly half of surveyed crypto experts predicting that Bitcoin may reach new all-time highs within six months post-halving.
What’s Next?
With strong factors like ETF accessibility and the upcoming halving event, the future of Bitcoin looks promising. Industry insiders will be closely watching to see if the trends from previous halving cycles hold true in this new bull market.
Interested in understanding how this trend might impact your portfolio? Speak with a cryptocurrency investment consultant today to explore your options in this dynamic market.
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Disclaimer: The information provided on this page is for educational and informational purposes only and should not be construed as financial advice. Cryptocurrency assets involve inherent risks, and past performance is not indicative of future results. Always conduct thorough research and consult with a qualified financial advisor before making investment decisions.
“The cryptocurrency and digital asset space is an emerging asset class that has not yet been regulated by the SEC and US Federal Government. None of the information provided by Kenson LLC should be considered financial investment advice. Please consult your Registered Financial Advisor for guidance. Kenson LLC does not offer any products regulated by the SEC, including equities, registered securities, ETFs, stocks, bonds, or equivalents.”
