Why I am Bullish on Bitcoin
Those past few months BTC has been on the spotlight, with the price jumping from 16 500 $ to 30 000 $ in only 4 months even tho many where telling us how Bitcoin was dead, they where saying that the Terra Luna crash or the FTX bankruptcy reaveled the true face of crypto which was being a scam.
All of that switch to the new narative that Bitcoin might be something we all should hold.
So what happen to all of those people I’ve mentioned earlier ? Something has made them change their mind ?
The Institutions
As some of you may know BTC has trigger a wave of adoption in the Investments Funds ecosystem, with the request for a ETFspot BTC coming from giants like Blackrock or Fidelity Investments or even Ark Invest ! Some of you might argue that there is nothing official yet however if you look in the history of Blackrock request for an ETF, we can see that they been only rejected one time ! With a total ratio of 576/1.
Furthermore, things don’t only move in the US but also in Europe ! With an ETFspot BTC launch at the end of this month. Now let’s go to Asia, hong Kong is opening his door for the cryptosphere with the launch of an ETF BTC and for ETH also.
Ripple vs SEC
If you have followed the news recently you may have heard that Ripple the company behind XRP has “won” their lawsuit against the SEC if you haven’t you can check the article I’ve make here. I put won in quotes because it’s not really a complete win, in short, the decision says that it Ripple is selling XRP for institutions it’s a security but if it’s for individuals then it’s not a security.
Nonetheless, it’s a major defeat for the SEC and think there will be more with some major actor like Grayscale, Coinbase and Binance who are under the SEC attacks.
The FED
If some you are not familiar with the Federal reserve (FED), it’s an american institution that can raise or reduce interest rate for which US banks borrow money from centrals banks.
To keep it short, when the inflation is to high the FED rise the interest rate it makes the inflation go down and vice versa so in the last few years especially after the 2008 banks crisis, the FED has reduce interest rate in order to stimulate the economy but it comes at the cost of high inflation. So as you can see the FED has raise brutally in order to reduce the high inflation.
Right now it’s at 5,25 % which means that they are reducing inflation but it comes with the cost of an economical slowdown, this have a big impact for the risky assets like Bitcoin.
That is why if the FED decide to stop the raise and later reduce the interest rate it will be very beneficial for assets like Bitcoin !
The Halving
If you are familiar with Bitcoin you may have come across the term “halving” to simply the fact that the number of BTC as a reward for completing a “block” is reduce by half in this case in may 2024 approximately the rewards is going to be 3.125 BTC per block and it goes on and on till we hit the 21 000 000 max supply.
I’ll make an article explaining how Bitcoin works later.
So this means that the supply is lower and the demand will still be the same if not higher so the value of Bitcoin will go up because it’s more rare. Many investors believe that the halving is always the beginning of a bullrun, if we look at the stats we can see that after all 3 halving that happen we have a big upwards momentum.
Conclusion :
I believe that Bitcoin has a bright future ahead, however as you may heard it, the performance of the past doesn’t predict the future performance.
And you what do you think the future looks like for Bitcoin and the crypto industries ?
As always thank you for reading !
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Disclaimer : This is not a financial advice, you need to do your own research !
