The Bitcoin bull market is still at the beginning, but investors expect this to be one of the most important events in the crypto’s entire history. The main reason for this is the fact that this event is not only powered by the halving, but also the launch of the ETFs at the beginning of January. This much-anticipated approval sent ripples through the entire crypto community, leading investors to look for where to buy Bitcoin. Exchange-traded funds caused prices to soar even ahead of the next halving when investors predict the levels will exceed $100,000. So far, Bitcoin has managed to go above its previous all-time high levels of 2021. However, several corrections have removed some of its gains.
Since the market recovered quite quickly and returned to the previous levels in a matter of only a few days, investors remain certain that the current crypto environment is resilient enough to withstand any downswings.
Predictions
In the last weeks of 2023, the crypto space was rife with predictions about what the new year will bring for the digital finance world. Many anticipated the arrival of a bullish run after the losses of 2022 and the stagnation of 2023. At the time, the situation regarding the ETFs was still uncertain, as the SEC had delayed an official announcement several times, and traders were starting to lose hope. The most optimistic estimations showed that the levels approaching $120,000 were most likely. Now, it seems that these figures might have been too pessimistic.
Bitcoin went above $70,000 on March 11th. Very soon after, Ethereum, the biggest altcoin on the market also climbed over $4,000. It was the first time in roughly three years that this occurred, and the sudden change took the entire crypto environment by storm. While growth was certainly not a surprise, its sheer magnitude and strength caused investors to be somewhat surprised. Many had to change their strategies, as trading during times of heightened volatility requires no small amount of finesse and expertise. The world of cyber money is infamous for its fluctuations and changes, so investors need to consolidate their portfolios and make careful decisions to mitigate losses.
$300,000
Analysts are convinced that this is only the beginning of the current bull market and that more volatility will appear along the way. Some estimations show that, at the end of the bull run, Bitcoin’s value could be as high as $337K, a staggering amount far above even the wildest investor expectations. It is not yet clear what the dynamics of such a market would be, as bitcoin has never come even close to that level before. The fallout that would result from the massive corrections will also be substantial, with the losses potentially more serious than the ones of 2022.
But there are also some who believe that history won’t necessarily repeat itself. This scenario involves the market being sturdy and mature enough to withstand these fluctuations. There are many markers crypto researchers study in order to get a better idea of the market’s progression. The Bitcoin Macro Index is one of them, and it recently went over the blue band. This shows that the current bull market is driven mainly by fundamentals. That refers to the asset’s intrinsic value, including its appeal to the trading community, the technological innovation and efficiency it brings, as well as any regulatory changes that might affect the landscape.
The peak
When can investors expect the next Bitcoin peak? It’s highly probable investors will have to prepare for this event much earlier compared with the previous cycles. It is not yet certain when this will happen, as crypto markets, even those that are more stable and reliant like Bitcoin, are still subjected to serious changes. Offering predictions for the long term is particularly difficult as there are so many different factors influencing cryptocurrency markets. Traditional finance, world events, inflation and the regulations lawmakers impose are just some of them.
Yet, analysts can deduce that the most likely time frame is between December 2024 and February 2025. That leaves investors with a considerable amount of time until the prices reach a new all-time high, during which buying will become difficult and unsustainable for many. Some investors are convinced that this could spell trouble for the four-year cycles typically associated with the Bitcoin area. This system has been perfectly structured since BTC’s very early days, but that doesn’t mean that it cannot change. As the ecosystem shifts and morphs into something new, showcased by Bitcoin’s ability to enter price discovery mode a year earlier than anticipated, it makes sense for the trading environment to evolve, too.
Institutional engagement
The Bitcoin ETFs were set to bring in hordes of institutional and retail investors due to a very simple reason: safety. While Bitcoin is indeed known as digital gold and has gone from a niche asset known only to a few tech-savvy investors to a well-known class of holdings in just a few years, many still retain their reservations about it. That is naturally because of the volatility that comes with investing in Bitcoin. While all kinds of trading come with fluctuations, cryptocurrencies are well-known for their massive, violent shifts that can occur in a matter of hours.
The emergence of the exchange-traded funds could offer an alternative for those who want to deal with digital assets without risking their capital. Institutional investors, most of whom could be classified as whale investors due to the large amount of funds they own, make up a large portion of this demographic. Now, analysts believe the halving will have the same effect on the marketplace. At the moment, there’s a lot of uncertainty regarding what could happen. Some believe the hash rate will collapse and that miners might go bankrupt in very large numbers.
But there are also those who have faith that the halving will create higher adoption rates. Businesses are still learning about cryptocurrencies, but 2024 is definitely the year when more will become willing to familiarize themselves with them. That could make BTC an underlying commodity in the corporate world.
The current year will definitely be very interesting for cryptocurrencies, and investors have much to look forward to. If you’re one of them, make sure to create a trading strategy that is both strong and flexible.
