Why You Shouldn’t Ignore Bitcoin

Bitcoin’s bullish trend currently prevails, with the leading crypto asset aiming to regain the $40,000 mark and hit new all-time highs.

Bitcoin, the substrate of the blockchain, is revolutionizing financial space, and such digitization is playing a key role.

The global financial industry has seen crypto assets regain momentum. Most organizations, including leading banks, have also commented on accepting Bitcoin.

Indeed, a significant portion of the market believes that Bitcoin is poised to achieve new highs is weighing factors such as the upcoming halving event and the possible launch of the first U.S. spot Bitcoin exchange-traded fund.

Bitcoin’s current performance is primarily driven by continued speculation regarding post-ETF approval by powerful global asset managers like BlackRock, which have expressed interest in the product, thus creating an opportunity to attract institutional investors at record levels

According to Glassnode data, just over 37,000 BTC worth $1.4 billion has been withdrawn from exchanges since November 17, indicating that investors are in direct control of their crypto assets.

This outflow likely represents a trend in long-term holding strategies, but some market analysts anticipate it was partly due to Binance’s settlement with the United States Securities Exchange Commission.

The high holding bias also indicates strong demand and easing market selling pressure amid excitement over the expected launch of spot exchange-traded funds in the United States.

While attempting to test $40.00, Bitcoin encountered a strong rejection near its $38,000 level. Crypto derivatives were consistently the main reason for rejection, beyond the all-important resistance level. ($40K)

Price Action noted that over $1 billion of short positions will receive REKT as the largest crypto asset breaks out of its current trend. To prevent this, major companies continue to do spot sales to maintain prices within the channel.

However, short sellers may not be able to hold out for long, as Bitcoin is expected to trade in the six-digit range by the end of 2024, according to Standard Chartered’s latest forecast.

Thanks to the possible approval of the Bitcoin Spot Price ETF by the US, BTC/USD could nearly triple in the next 12 months from its current level of $37,700.

“We expect the halving to result in higher price increases than previously, especially with the earlier-than-expected launch of the U.S.spot ETF,” says EM FX Research, Standard Chartered’s West & Crypto Research division.

Director Jeff Kenrick said, “This suggests that there is a risk of reaching the $100,000 level by the end of 2024.” This number is a huge concern for consumer banks regarding how Bitcoin will grow in the coming years.

Consequently, MicroStrategy continues to buy Bitcoin. The listed American company said in an 8K filing that it purchased about $593 million worth of Bitcoin in November.

From November 1st to November 29th, the company together with its subsidiaries purchased 16,130 Bitcoins. The average price is approximately $36,000.

The company currently holds approximately 174,530 Bitcoins worth approximately $5.2 billion, with a purchase price of $30,000.

Before the November purchase, MicroStrategy announced a large share buyback in June, in which he purchased 12,000 Bitcoin in two months at an average price of $28,136 per Bitcoin.

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