HE Bitcoin is on track to end a record year. The most popular cryptocurrency has gained 160% so far in 2023, with stablecoin Terra recovering from pre-USD bankruptcy levels to reach $43,100, the highest level since April 2022. The digital currency is just 28% away from its all-time high The American technology index became the most profitable asset of 2023, falling far behind the Nasdaq’s 37% rise. If it ends like this, it will be his third best year in history; It increased by 1,375% in 2017 and 305% in 2020.
Where is it headed after its recent highs? “Bitcoin is trading in an ascending channel, creating ascending lows and maintaining support at $35,000 for now, with its eye on psychological resistance at $40,000 and $42,000 (261.80% Fibonacci). The next levels to conquer are $45,000-$50,000.”says Diego Morín, analyst at British broker IG.
British bank experts are even more optimistic Standard Chartered predicts that Bitcoin will close the year at $100,000. “We believe the launch of exchange-traded funds ETFs for both Bitcoin and Ethereum will be approved in the first quarter of 2024. Opening the way for corporate investment“, they emphasize from Standard Chartered.
These increases occurred in light of the possible halt to interest rate increases by the Federal Reserve and the possible authorization of a Bitcoin ETF by the United States Securities and Exchange Commission (SEC) in January. So fund managers could buy bitcoin through these ETFs.
Bloomberg gives a 90% chance that the SEC will greenlight Bitcoin ETFs between January 8-10. In June, BlackRock applied for Bitcoin ETF Besides the cash, some twelve investment funds, such as Ark Invest and Grayscale Investments, are also interested. But JPMorgan warned that the new ETFs could put “strong downward pressure on bitcoin prices.”
“The problems of states with exorbitant levels of debt have led many investors to take positions in the cryptocurrency market, bringing Bitcoin back into the game as it is considered a ‘safe haven’ value for many operators,” says Morín.
Bitcoin experts also attribute the increases to the following: The fourth ‘halving’ will occur between March and June 2024Because this represents the decrease in rewards Bitcoin miners receive every four years. Three ‘halvings’ in history have reached all-time highs within 12 months, so many investors believe history will repeat itself. These halvings will continue until no new bitcoins are produced and the cryptocurrency reaches the final supply of 21 million tokens. There are currently around 19.5 million in circulation.
Jamie Dimon (JP Morgan) filed a criminal complaint against Bitcoin
Jamie Dimon, head of the US bank JP Morgan Chase, assured this Wednesday at the US Senate banking committee meeting that “if I were the government, I would cancel cryptocurrencies.” “The only real use case is criminals, drug traffickers… money laundering and tax evasion,” he said.
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This is the latest criticism from the banker who heads the organization with the largest holdings of cryptocurrencies in the United States. In fact, in previous statements, he defined this cryptocurrency as follows: “An exaggerated fraud”but later he limited his words.
But more and more organizations are approaching cryptocurrencies. This week the French bank Société Générale recently launched its own cryptocurrency It is stable to be listed on the Bitstamp exchange, one of the oldest and most popular exchanges in Europe. It is tied to the Euro and based on the Ethereum network.