With Bitcoin (BTC) recently touching $36,000 for the first time since May 2022, many market spectators want to know if this is a good time to buy. The short answer: this could be the best time in recent history to buy Bitcoin.
A flurry of impactful fundamental factors, coupled with several strong on-chain events, all indicate that Bitcoin’s price is set to surge.
Bitcoin Halving, ETF Approvals, and on-Chain Metrics Indicate Perfect Market Conditions
The first two factors driving Bitcoin’s price potential are the Bitcoin halving and the SEC’s anticipated Bitcoin ETF approvals set to occur in Q1 2024.
In April 2024, Bitcoin is set to experience a “halving” – an event hard-wired into the Bitcoin code that cuts the number of rewards miners earn by 50% every four years. Bitcoin halvings lead to a significant decrease in the amount of new Bitcoin entering the market, creating a supply shock that has historically led to bull runs.
Generally, the bull run takes off within six months of the halving, meaning Bitcoin and the rest of the market could be surging by next year.
However, an unprecedented event is also driving Bitcoin’s potential this time – Bitcoin spot ETF applications. The world’s leading asset managers like BlackRock, Citadel, and Fidelity have all applied for these ETFs, which will allow them to offer Bitcoin to their customers if approved.
Reports show that these ETFs could inject up to $1 trillion into the market, with $155 billion flowing directly into the Bitcoin market cap.
Meanwhile, the amount of holders of BTC for between two and 52 weeks has decreased, but the number of new holders with BTC for up to two weeks is up by 48%.
This represents a growing conviction in long-term holders, while swing traders (two to 52 weeks) lock in profits. However, holders with Bitcoin for up to two weeks growing by 48% represents an increasing retail interest, indicating that the bull market is nearing.
Meanwhile, Chainalysis also reported that the amount of “illiquid” Bitcoin (Bitcoin not being bought and sold) has just experienced its largest one-week increase in 10 weeks, increasing by 0.4% in the last 30 days.
Meanwhile, the amount of liquid Bitcoin has decreased by 3.4%, indicating that holders are not selling their assets. According to Chainalysis, this can lead to an increasing price.
These factors all point to significantly bullish market conditions for Bitcoin. However, as its price surges, traders may seek projects with even more upside potential to maximize their gains.
Bitcoin Derivatives Show Higher Upside Potential than Bitcoin
Despite Bitcoin’s strong bullish momentum recently, related altcoins have outperformed the asset. For instance, Bitcoin Cash has soared 117% in the last year, while Bitcoin SV has pumped over 38% this month.
Meanwhile, the new Stake-to-Earn project Bitcoin ETF Token (BTCETF) boasts tremendous upside potential, having only launched as a presale on Monday. The presale is currently in round one, priced at $0.005, but this price is set to increase in three days.
The project will burn 5% of its total supply at five different key Bitcoin ETF milestones, inducing scarcity when the hype is highest. This could lead to significant pumps.
Considering its early stage, capitalization on a prevalent Bitcoin trend, and the current landscape for Bitcoin-related tokens pumping, BTCETF could be one to watch.
Another Bitcoin derivative showing bullish momentum is Bitcoin Minetrix, a trending presale revolutionizing Bitcoin mining.
The project features a Stake-to-Mine mechanism, enabling users to mine cloud Bitcoin by staking BTCMTX tokens on its Ethereum-based platform.
The allure of passive Bitcoin rewards, coupled with its potential to bring mass adoption to Bitcoin mining, has led to $3.7 million being raised so far, despite launching less than six weeks ago.
Top crypto platforms in the US | November 2023
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