Bitcoin is on the rise. HE market cryptocurrenciesWorn down by scandals and the usual ups and downs, the United States has returned in recent weeks to assert its unexpected powers. Bitcoin gained 8.19% in value last monthThis is a high percentage compared to conservative savings products. But in the case of investing in cryptocurrencies, the only certainty is high uncertainty. But it turns out that disturbing news can also have an upward impact on cryptocurrencies, although even this axiom is not certain. The latest increases coincided with the war in Israel.
Watch out for the ‘halves’
As of Tuesday, October 17, there are 182 days left until the next date ‘divided in half’ bitcoin. The ‘halving’ is the automatic emission reduction process that occurs every 210,000 cryptocurrency production blocks. Its purpose is to reduce the rate of issuance of the bitcoin monetary supply, and experts predict that this will have a clear impact on the revaluation of the reference asset. If the current price is around 26,000 euros, experts are considering increases, although expectations are based on mere guesses without clear support. What makes sense for some is that the price will rise to at least 30,000 euros per unit as the possibility of creating new bitcoins is restricted, but other more optimistic analysts point to 130,000, some even point to the psychological barrier of $300,000. The average investor should be wary, especially when it comes to an asset that, like no other, satisfies the axiom that past returns do not mean future profits.
past trends
HE next ‘halving’ It is expected to occur between May and April 2024. The reward then will be 3,125 Bitcoins per block mined. In this case, if the demand for new bitcoins remains constant and the supply of new bitcoins is halved due to the ‘halving’, the ‘logical’ thing would be an upward trend in prices. According to Pantera Capital, demand for Bitcoin has increased before halvings in the past due to the expectation of a price increase: “Historically, Bitcoin bottomed out 477 days before the halving, rising even before reaching the halving.” and then it exploded upward,” they explain.
According to the consultant Julius Baer, “There’s a lot of noise on cryptocurrency exchanges right now, and the lawsuits of Sam Bankman-Fried, founder of cryptocurrency exchange FTX, are under the spotlight.” JB experts believe that “regulations will continue to play an important role in the coming weeks as the overall environment in financial markets becomes more risk averse than risk bets due to uncertainty about what will happen in the Middle East.”
Beware of non-Bitcoin cryptocurrencies
for Alex KuptsikevicFxPro’s senior analyst says the money is coming back cryptocurrencies. Its market value increased by 1.5% in the last 24 hours, reaching $1.091 trillion. According to him, the price is not high by historical standards, and instead of an active exit from the market, there is an influx of new buyers. In any case, buyers’ interest is concentrated on Bitcoin, whose participation in the total capitalization has reached over 50%, reaching the highest level since April 2021. If the SEC recognizes Bitcoin as the reference asset, its price may increase, but the rest will not. of cryptocurrencies that can eliminate the usual correlation of the past.
international demand
The investment firm’s latest global research eToro It shows that Bitcoin is the most popular asset internationally, ahead of cash and stocks, with the average holder allocating 21% of the total amount invested where appropriate. The index classifies the five countries that have adopted cryptocurrencies the most: India, Nigeria, Vietnam, the USA and Ukraine. According to eToro, countries where cryptocurrency investment is prohibited include Pakistan (ranked 8th), China (ranked 11th) and Morocco (ranked 20th). Greater oversight by the Treasury has also caused a certain brake on investing in cryptocurrencies in Spain. Cryptocurrencies are partially illegal in 32 countries and completely banned in eight of the 60 largest economies; China and Saudi Arabia top the list. However, in some of these countries, major changes in legislation are being considered and the pace of regulations is increasing. In case of legalization, experts assume that prices will increase due to strengthening international demand.