The entire cryptocurrency market is buzzing with speculation, and at the center of it all is Bitcoin. Volatility is a legitimate fear. With the recent landscape of technology and regulation very much aligning, it’s hard not to make a bullish argument for an increase in Bitcoin’s value. In conclusion, I think we can expect to see Bitcoin gradually climbing toward, and eventually above, its previous all-time high of $130,000 in the fairly near term future.
The crash course of Bitcoin has indeed been a history of ups and downs. I remember really well that increase in 2021. It didn’t even take a full month to break the 2020 price record, as Bitcoin quickly blasted through $40,000 before the end of the week on January 7th. By the time of Coinbase’s public debut in mid-April, the resulting enthusiasm sent Bitcoin up to an all-time high of over $60K. The November 10, 2021 peak when Bitcoin had soared to $69,000 and closed around $64,921. That euphoria didn’t last long. After inflation uncertainties and the emergence of the Omicron variant triggered a sharp drop in mid-December, Output Summary. Consequently, Bitcoin went down to the support of $46,211 for closing. These swings, though disconcerting to a few, may be unacceptable for the crypto market.
These are some of the patterns analysts, like this one who’s followed Bitcoin years, have identified in historical price movements. Perhaps the most consequential is the effect of Bitcoin halving events. This only occurs about once every four years. So to fix this, they reduced the incentive that miners receive when they successfully mine a block by half. In the past, every halving event has preceded a massive price runup. This increase happens as the supply of new Bitcoins coming into circulation starts to dwindle.
In hindsight, the first major bull run began in 2010, achieving new highs as Bitcoin hit approximately $0.08 in July. On the surface, this number might seem like a small increase. Even then, it heralded the future of Bitcoin going from obscure experiment to a household name asset with worldwide recognition.
Fast forward to 2024 where the dynamics have changed dramatically. First, institutional investors—pioneered by MicroStrategy but with BlackRock, ARK Invest, and Fidelity joining the ranks—are major players in the Bitcoin market today. Their engagement is a clear indication of Bitcoin’s increasing acceptance as a legitimate asset class.
These two institutional giants have rolled out a number of new financial products aimed at making Bitcoin more accessible to their clients. Fidelity’s deep strategic focus on Bitcoin is indicative of a larger shift toward acknowledging cryptocurrency as a truly transformative force in the financial landscape.
The impact of these investors goes beyond just purchasing and holding Bitcoin. They are at the forefront of innovation in the industry. They further best practices through their focus on diversification, regulatory compliance, and environmentally sustainable strategies. This is important for Bitcoin’s long-term healing and integration into the overall status quo.
The entry of spot Bitcoin ETFs has been revolutionary, especially for institutional participants. These ETFs offer a simple, regulated way for investors to gain exposure to Bitcoin without having to buy or store the digital asset themselves. This makes the investment process much simpler and removes a lot of the operational and security risks that come with direct ownership.
Naturally, it’s equally important to address the warts. Bitcoin transactions can become slow and expensive, which could complicate or prevent its use for normal transactions. The possibility of losing access to their funds by misplacing or forgetting a digital key is still a risk. Theft, loss or diversion by third-party intermediaries is another major risk.
Regulatory hurdles pose a major challenge. While progress has been made in the crypto space, uncertainty still surrounds its legal status across the board. This vagueness creates major barriers to adoption, which we discuss here.
Yet, arguably the biggest snag in Bitcoin’s adoption is its volatility. And the boom-bust cycles that seem to happen weekly can make any seasoned gambler’s stomach churn. The cost fell from almost $65,000 in Nov 2021 to just above $20,000 a year and a half later. This steep drop is a reminder of just how much is at stake.
Yet, I think the rewards very much exceed the risks. Technological innovation is clearly afoot! The rapid growth of the Lightning Network is accelerating Bitcoin transaction speeds and reducing expenses, addressing some of Bitcoin’s most significant issues head-on. In addition, emerging regulatory clarity in other jurisdictions is adding a more stable and predictable climate for investors.
The latest halving events, US institutional adoption, technological upgrades and regulatory clarity are all undeniably a part of it too. It’s my opinion that these factors, turbo charged by the current trend towards inflationary monetary policy, are positioning Bitcoin to experience explosive growth. We know that predicting the future with 100 percent certainty is not possible. In any case, I remain bullish that Bitcoin will break through and beyond $130K!!!
As one who’s watched the rise of the crypto market with acute observation, I’ve experienced the radical possibility first hand that comes with Bitcoin. It’s not all around price, it’s around the fundamental technology, and it’s around the capacity to change the monetary procedure as we know it. My guess is that while the road to 130k will be bumpy, the long-term trend is definitively up. The path forward will be paved by creativity, policy, and the constant development of this revolutionary tech.
