Bitcoin is entering a new era and is stronger than ever

February 26, 2024
Natalie Thorburn

 

Bitcoin, the first cryptocurrency in the world and the one that completely revolutionized the concept of money by creating fully digital currency, is doing better than ever. 2022 has been one of the most difficult years in the history of BTC, with low values and considerable losses that caused many to wonder whether investing is really worth it at the end of the day. 2023 has been more well-balanced but still quite challenging. Yet, Binance data shows that Bitcoin is currently on the cusp of a monumental change that will take you to all-time high values it has never seen before.

three gold-colored bitcoins on black surface

Image source: https://unsplash.com/photos/three-gold-colored-bitcoins-on-black-surface-OG3A-ilG8AY

The market

Bitcoin remains the strongest and most resilient cryptocurrency in the world, being an essential asset for all those looking to diversify their portfolios. Nonetheless, the marketplace has not yet recovered from the difficulties of the past two years. On Monday, December 11th, the trading session had traders losing more than half a billion dollars in liquidation positions. The culprit is the steep volatility that struck both the long and short leverages, with some dropping by well over 10%.

Even Bitcoin dropped momentarily, moving from $43K to $40,300, but has since started recovering. While the numbers might be worrying for some investors, most analysts believe there’s no reason to be concerned. Since the beginning of the year, Bitcoin has been steadily building the momentum that allows it to grow. The astronomical rise of the Ordinals and Layer 2 solutions have also helped the ecosystem develop even further, leading most to predict that the latest Bitcoin era will be something unlike anything we’ve seen before.

ETF race

The ETFs have got the whole crypto community talking and debating. An official ruling approving Bitcoin-backed exchanged-traded funds could help the prices climb considerably, kickstarting the beginning of an incredibly competitive bullish trend. Many investors were expecting to get an answer this December, but the Securities and Exchange Commission recently announced that the most probable date for an official announcement is January 25th.

Recently, Pando Asset has also become an entrant into the race, albeit later than many of its peers. The Swiss asset manager is the 13th applicant for a spot in the United States and is joining the ranks of BlackRock, Grayscale and ARK Invest.

Stablecoin

This December, Bitcoin will end support for its native stablecoin, BUSD. The Bitcoin blockchain has already begun winding down the services relating to this coin and starting on December 31st, all coin minting will be stopped, and support for the products will be interrupted. According to spokespersons for noteworthy exchanges, including Binance, users have a choice to either withdraw or convert all their assets.

The deadline is December 15th. Starting from January 1st, all processes will be permanently disabled, and all the remaining balances will be automatically converted into FDUSD, First Digital USD.

$60 million

According to recent data, the BTC price surges will continue to bring the coin to new heights. There’s an upward momentum at the moment that investors can benefit from, and as a result, the prices have reached $40,00 for the first time since the middle of 2022, right before the bear market got into full swing. Researchers believe that spot buyers need to maintain the momentum during each trading week.

When a robust trading environment comes to wake the market from the time it spent stagnating, there’s typically no strong edge, but there are opportunities for shorters to become trapped. Figures show that for twenty-four hours between December 1st and 2nd, roughly $30 million in Bitcoin shorts were immediately liquidated.

Chart fractal

Investors believe Bitcoin might repeat the same moves it made during the post-pandemic days. Although it is currently struggling to clear long-term resistance, the price action appears to be largely unperturbed. Looking back at a chart fractal, analysts believe that it’s plain to see BTC is nowhere near done with its bullish market. The data, encompassing numbers that go from late 2019 to the middle of 2021, displays a blueprint for a bull market in the BTC ecosystem.

The data looks quite similar to the current movements. The trend is actually nothing new but has started to rear its head during the last weeks of 2022. Ever since the price point has entered a period of gradual price recovery. In this scenario, the recent growth is similar to the upswings that led to the all-time high of $69,000 Bitcoin recorded back in 2021 and which remains unsurpassed as of now.

At the moment, the market is much more optimistic than it has been in months, and many are confident that the prices will soon exceed their previous values. Some actually believe that the bull cycle will be much more extensive and ample than initially thought and could take BTC as far up as $400,000. However, it is not yet clear whether such a growth level would be possible or sustainable since it’s not unheard of for the crypto market to see very considerable gains and then promptly lose them because they’ve got no support.

2025

Cryptocurrency predictions include both short-term and long-term figures of varying degrees of realism and accuracy. For 2024, there are very few who don’t believe a bull market will occur. Its scope is not yet fully agreed on, but that’s usually the case when it comes to Bitcoin. Although it is no longer a new market, Bitcoin remains relatively volatile. That’s why it is almost impossible to accurately estimate where the values will go exactly.

But what about 2025? Will this growth remain stable into the following year as well, or is it doomed to melt away and plunge Bitcoin into chaos again? Current analysis shows that Bitcoin will unquestionably hit an all-time high very soon. The cycles seem to include 27-month timeframes, meaning that a new top value will show up around February 2025.

While it’s not enough to say that the entire year will be outstanding, it does help foster optimism and shows that there’s potential there to exploit if the investors can maintain the momentum.

While the rest of the crypto ecosystem might still be reeling a little, Bitcoin appears to continue growing.

 

 

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