Bitcoin has witnessed a notable surge in recent months, building on its impressive 154% gain in 2023. Surpassing $47,000 on Monday, it achieved a new 52-week high, indicating continued momentum.
Despite its recent performance, both Bitcoin’s valuation and the potential for crypto stocks to rise further remain considerable. Two factors contribute to the optimism surrounding Bitcoin and the broader cryptocurrency market in 2024.
The imminent approval of a spot Bitcoin exchange-traded fund (ETF) is a pivotal development that could attract more investors to the crypto space. Expected to materialize this week, a spot Bitcoin ETF holds significance as it allows investors to directly hold Bitcoin’s offering a more accurate reflection of its true market value. This eliminates the reliance on derivative Bitcoin ETFs or the necessity for a digital wallet, potentially expanding the pool of investors and boosting Bitcoin’s credibility.
Inhoudsopgave
Bitcoin’s Price to Rise in 2024
Furthermore, the anticipated Bitcoin halving event in 2024 adds another layer of excitement. Occurring roughly every four years, the halving reduces miners’ rewards for transaction validation, creating scarcity and limiting the growth of the Bitcoin’s supply. Historical trends suggest that Bitcoin’s price tends to rise after each halving event, reinforcing the scarcity narrative and attracting new investors.
The correlation between Bitcoin’s prices and crypto stocks is evident, with the latter benefiting from Bitcoin’s value surge. While the halving may impact miners, larger companies can capitalize on reduced competition. Additionally, diverse crypto stocks, such as Coinbase Global. Have demonstrated resilience and outperformed Bitcoin, particularly since the beginning of last year.
Investors contemplating entry into the crypto market should exercise caution, given the inherent risks associated with speculative assets. Despite the potential for significant gains, volatility remains a constant factor. Those comfortable with risk may find opportunities in Bitcoin and crypto stocks. But risk-averse investors should carefully assess whether such investments align with their tolerance for potential losses.
In conclusion, the approval of a spot Bitcoin ETF and the upcoming halving event position 2024 as a promising year for Bitcoin and crypto stocks. However, investors must weigh the potential rewards against the inherent risks before deciding to participate in these dynamic markets.
Want to learn more about bitcoin mining or start mining yourself?
“This data underscores considerably stronger profitability in the mining sector compared to challenges experienced in 2022 and part of 2023.”
In approximately six months, Bitcoin undergo a “halving,” reducing the new bitcoins awarded to miners by half. Satoshi Nakamoto introduced this event in 2009 as an anti-inflationary measure. Occurring roughly every four years, the lead-up to halvings traditionally proves the most profitable time for crypto investors. “Buying bitcoin six months before a halving and selling 18 months after has historically outperformed a ‘buy and hold’ strategy,” affirms the analyst.
Bitcoin mining explained.
Bitcoin Mining is the industry where the largest institutional party BlackRock is betting big and has recently become majority shareholder in four of the five largest mining companies.
You buy one or more Bitcoin mining machines and within 6-8 weeks it is mining for you with a current rate of 5.2 cents including hosting, security and maintenance. What does a miner cost? How can these power rates be so low? Want to know more?
Attend the free Q&A about mining:
With Mitchell Weijerman (CEO of Epic Mining) on wednesday the 17 of januari at 7PM for free. Where Mitchell answer all your questions live.
Also you can calculate profit in this spreadshee
Full article about mining in depth you can find here. Bitcoin mining – Buy Low Mine High.
The simple way how smart investors can profit from a broken banking system. How crypto miners made 16.7 billion USD in 1 year and how we can get a piece of it. How anyone can make money with crypto mining within 4-8 weeks, regardless of your knowledge or experience.
