The BTC market hasn’t been in the most stellar condition over the past year, despite investors’ expectations back in January 2023 and the signs of an incoming bull market. However, October brought in renewed hope as the market is gradually approaching the next halving event. Many are looking to buy Bitcoin during this period, as Binance data estimates the next bull run will occur soon, by which point the prices will be too elevated for selling. Holding has increasingly become the preferred alternative for those wanting to engage with the Bitcoin market since it guarantees minimal losses.
This is a necessity in an ever-changing market that still records considerable volatility. However, going into 2024, the market could still record changes, mainly owing to the continuous geopolitical uncertainties and the intensity of worldwide events.
Going into the crypto environment without a good strategy is a terrible idea that can cause a lot of unpleasantness. The most noteworthy is the possibility of losing significant amounts of money that you might never get back. As such, it’s essential to be aware of the general movements within the marketplace and what they mean for your portfolio. While it’s impossible to predict the price points with 100% accuracy, you can still learn a lot from historical trends.
One of the surest things in the Bitcoin ecosystem is that halvings create considerable returns. The previous three have brought significant revenue for investors, and 2024 is expected to follow in the same footsteps. Data shows that those participating in the market during halving events can record returns as high as 2,5000%. To put that into perspective, that means getting $5 somewhere around the $130,000, a staggering climb.
The price surge occurs naturally as the issuance decreases by 50%. The scarcity provides a spike in value and acts as a strategic window for investors who are astute enough to capitalize on the massive returns.
Bitcoin is highly sensitive to changes in its general environment, and keeping an eye out on the news can help you make sounder decisions regarding your buying or selling ventures. After you’ve become accustomed to the twists and turns, you might even be able to make some predictions, so you’ll have the chance to perform transactions that can help your portfolio in advance.
Bitcoin tends to do quite well during political or economic uncertainty. Following in its footsteps, the rest of the crypto market also enjoys a resurgence. The reason for this is quite simple. When situations are complicated and elicit fear among members of the general public, most of them are inclined to look towards alternative forms of finance, just in case the traditional methods fail.
According to most investors and analysts, Bitcoin has demonstrated that it is a resilient asset, capable of withstanding the troubles that come its way. The complex political and military situations surrounding Ukraine, Russia, the Gaza Strip, and Israel have seen price increases in Bitcoin of approximately 30%, while those in more traditional assets such as TLT, the ETF of the US Treasury Bond, climbed by just 3%.
Many analysts have started looking towards Bitcoin to ascertain the health of the fiat financial systems during political tension and military conflict. Even though there’s a general phase of weakness at the beginning, people later buy the dips, regaining balance.
Raking in Profits
With the halving fast approaching, miners need to act quickly in order to secure profits and ensure their portfolios continue to thrive. Mining companies are also rushing to lock in the revenue ahead of the much-anticipated halving, after which the rewards will be cut in half. The event is expected in April 2024 and is designed to slow the release of new coins. Bitcoin has a total supply of twenty-one million coins that will ever be mined. Out of them, nineteen million have already been mined.
The thirteen biggest Bitcoin miners listed in the US have already proved the urgency of the proceedings, as they all appear to be in a rush ahead of the halving. According to the latest figures, the Bitcoin hash rate has also spiked to an all-time high, signifying that the miners have no choice but to use more power and increase the speed of solving the math problems that create new coins over the past month. Bitcoin climbed by nearly 40%, which incentivized the miners.
The 30-day average revenue miners earn has been gradually improving throughout 2023 and reached its 18-month high on November 11th. The figures stood at $32.46 million. Nonetheless, mining remains less profitable than it was back in 2021, the year when BTC achieved the highest values in its entire history.
Since its announcement, the potential of an ETF approval has been at the forefront of investors’ attention. However, its delays have worried many and kept the prices stagnating. On November 16th, the CEO of a well-known crypto exchange discussed the situation between the United States Securities and Exchange Commission and several different companies looking to secure a Bitcoin ETF approval as soon as possible.
According to the latest data, investors have realistic reasons to remain optimistic that the situation will eventually work out in their favor and that it is only a matter of time until the prices begin seeing robust gains. Yet, the market might have to recover on its own before the SEC considers giving the green light to the BTC ETFs. In this sense, many analysts believe a fresh round of rejections is possible before the positive news arrives.
The fact that it is taking so long for the decision to be approved is also due to the troubles the cryptocurrency environment has been experiencing lately. The notable and infamous collapses of several high-profile exchanges and crypto-friendly banks have made the news and become common knowledge even for non-traders. This has chipped away at crypto’s reputation and cast a long shadow on the environment’s legitimacy and honesty.
The cryptocurrency environment is still recovering after its annus horribilis in 2022, but the upcoming halving event will help the ecosystem recover significantly.