From: allin
Bitcoin has seen significant market activity, reaching an all-time high and demonstrating strong resilience due to various factors, including the approval of Exchange Traded Funds (ETFs) and its underlying technological stability [01:23:57].
Recent Price Surge and Milestones
On Tuesday, Bitcoin hit an all-time high of 68,000 at the time of recording [01:21:10]. The cryptocurrency has experienced a significant rally in 2024 [01:22:25], increasing by 70% since January 25th [01:22:27]. Some market analysts believe Bitcoin is on a “death march to 100K,” though the realistic timeframe for this price point remains uncertain [01:22:43].
Impact of Bitcoin ETFs
The approval of Bitcoin ETFs by the SEC on January 10th has made it significantly easier for individual investors (“mom and pop”) to buy and sell Bitcoin [01:23:02]. BlackRock’s Bitcoin ETF became the fastest ETF in history to reach $10 billion in assets [01:22:46]. This influx of capital into ETFs is considered a very significant development [01:23:02]. The success of Bitcoin ETFs has led to speculation about the potential approval of an Ethereum ETF, suggesting that these assets are becoming integrated into the broader financial fabric [01:23:36].
The Halving Event
A “halving” event, which occurs approximately every four years, is scheduled for April [01:21:55]. The last halving was in May 2020 [01:22:00]. This event cuts mining rewards in half, reducing the supply of new Bitcoins entering circulation and potentially causing market swings [01:22:05]. The incentive model of Bitcoin relies on its price remaining high to ensure miners continue to support the network [01:24:31].
Market Outlook and Resilience
Bitcoin has demonstrated incredible resilience on a technological basis, having not experienced breakdowns, denial-of-service attacks, or significant hacks [01:23:57]. Its stability and trustworthiness are impressive [01:24:25]. However, Bitcoin has not yet seen meaningful adoption for transactions or commerce [01:24:51]. Instead, it has largely become a store of value asset [01:25:03]. The SEC continues to take action against certain bad actors in the broader crypto market [01:23:51].