Bitcoin is ready to set new records amid recent growth

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    In 2021, Bitcoin managed to achieve its highest value yet, nearing the $70,000 level before collapsing in 2022 and losing a considerable amount of its value. Many investors gave up on their portfolios at the time, afraid of further losses, but time and patience have rewarded those who chose to switch to long-term holding instead of daily transactions. 2024 appears set to deliver more robust performance across all areas, and the Bitcoin price has already surpassed the $60K level by over $2,000. If the trend continues in the same vein, it’s not unlikely to see BTC go to $100,000 until 2025. That’s why it’s important to look for where to buy Bitcoin before that time in order to have a strong portfolio when the rally picks up speed.

    Exchange withdrawals

    Some investors and analysts believe that nowadays’ trends are very similar to the ones from 2021. One of the most obvious signs is the influx of exchange withdrawals. The latest data shows that, as of March 1st, the cumulative value of the withdrawals stood at $2 billion. Researchers said that this is one of the most significant withdrawals in more than five years. The exchange-traded funds are primarily believed to be responsible, as investors expected considerable growth to arrive with them.

    However, on some exchanges the outflows don’t appear as necessarily tied to the ETFs. That shows that the price growth has made investors more optimistic about Bitcoin’s potential, and more are willing to engage with the market and consolidate their portfolios now.

    Investors 

    The issue of how many investors are actively part of the market remains crucial for the Bitcoin landscape. The introduction of ETFs on the market has been welcomed as a way to foster development and add value, as institutional and retail investors who were previously unlikely to invest in crypto are more likely to want to engage with a product for which the volatility and fluctuations are not so steep. Some of the latest data shows that new entities are becoming interested in the marketplace and have started buying, selling and trading Bitcoin.

    The data mainly comes from ongoing changes in UTXO, unspent transaction output. The UTXO refers to a crypto amount that wasn’t authorized by the senders and can be spent by recipients. The older coins, an umbrella term that includes all the BTC that has been dormant for at least six months, are waking up, with younger coins becoming more involved as well. That means that new investors are eager to join the market, and it’s not just business and institutional ones.

    Market watchers expect an influx of individual investors over the next few months and that the effect will be a genuine bullish market of the kind that investors have been anticipating for months.

    UK market changes 

    All cryptocurrency markets have been dealing with intensified regulatory pressures over the past year. The UK was the site of several such measures, and the latest news from the sector says that the trend is set to continue during this year as well. According to a recent announcement, law enforcement authorities will soon be able to freeze crypto assets revealed to be included in illicit activities without a conviction. The new law is set to come into effect toward the end of April.

    The document was published on February 29th and is part of the Economic Crime and Corporate Transparency Act 2023. The laws are expanding the attributions of the National Crime Agency that can seize crypto assets without the need for extra legal procedures. Authorities will also be able to retrieve assets directly from wallets, exchanges and other service providers. There will also be the option to completely destroy the assets if such a move is deemed necessary.

    The destruction process will most likely involve burning the assets, the typical process involved when assets must be taken out of circulation. Regulators have discussed the law, saying that it aims to crack down on the use of cryptocurrencies in drug trafficking, scamming and other types of cybercrime. In this sense, it will help those who were the victims of such crimes. A British national recently lost a whopping $46,000 to scammers, leading many to believe that law enforcement is not yet well-equipped to handle online crime.

    The United Kingdom also has a plan to pass new laws that will regulate staking and stablecoins, as well as the operations that come with them. The plan is to enforce all the regulations ahead of the next election, which will take place on January 28th, 2025. As such, investors can expect things to progress quite rapidly over the following months.

    The momentum 

    2023 was expected to be the year when the cryptocurrency market gained the necessary momentum to continue growing and recording gains. Unfortunately, after a promising start, the prices stagnated, and investors were plunged into uncertainty once more. But 2024 is an entirely different thing, and most investors are convinced that there’s nothing in the way of market growth this year. The ETF approval and the upcoming halving will help keep Bitcoin on the right path, and if BTC grows, then the entire market will prosper.

    Although the macroeconomic situation isn’t the best, inflation rates are lower than in 2023, and that is undoubtedly a good thing for crypto as well. In fact, the momentum is set to bring forth a “super cycle”, an event during which the price expansion is so considerable that bull runs seem weak and meek in comparison. This type of trend is typically driven by solid and consistent growth, as well as a demand for more products and services. Some analysts also believe that the current financial conditions are simply auspicious for a super cycle.

    The traditional systems have failed many people, and the current era is also driven by technological development and expansion. Many people have started to lose their trust in centralized systems and the use of intermediaries. The natural solution is a decentralized system, but the blockchain is still too new for some. There’s still some work that needs to be done in order to help it achieve its true potential, but the system may be used on a broader scale shortly.

    2024 will be an exciting time for cryptocurrencies, and Bitcoin will certainly be at the center of the development. If you’re a trader, make sure to keep an eye on the news in order to ensure that you’re making the best choices for your portfolio.

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