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By the way, just a year ago Bitcoin had a terrible depression. Last December, it cost $16,000, and then, after the collapse of the FTX exchange, and its founder, Sam Bankman-Fried, was arrested for fraud.
Yes, this year we also had such a story. Binance, of course, did not collapse, but its founder Changpeng Zhao was accused of violating US anti-money laundering regulations and sanctions. But this did not stop the growth of the crypt.
What's Pulling Bitcoin Up Today?
1. The crypto world is very much looking forward to a Fed rate cut in 2024, which should help risk assets.
2. Also looking forward to spot bitcoin ETFs. Such an ETF allows you to invest in Bitcoin without buying the crypto directly. The approval of the ETF will make the crypto more accessible in the largest and richest market in the world, i.e. the US.
3. And the halving of bitcoin awaits us next year. The miner's reward is halved every 4 years, which reduces the supply and increases the price. Let's remember: after each of the last three halvings, the bitcoin rate reached record highs. All this should accelerate the price of BTC in the near future. At least this is what investors dream about.
But there are nuances...
1. Bitcoin is growing, but its 24-hour trading volume is three times lower than at the same price levels during the last cycle. It's scary.
2. Lowering rates may not work. The world economy is teetering on the brink of recession, and the world may face an acute shortage of liquidity. Therefore, even if the rates are reduced, it is not a fact that a "river of money" will flow into the crypt.
By the way, the effect of lowering rates will be revealed only six months after it happens. As from halving. So there may not be enough fuel for takeoff into space in the near future.
Should You Go To Bitcoin Today?
Investors may be overly optimistic today, but that is no reason to abandon BTC. Michael Seiler, the chairman of MicroStrategy, has been hoarding it at all costs, and it seems like a good strategy, since he already has about $2 billion in unrealized profits.
Even if we see the end of the bull market today or tomorrow, the halving and the upcoming soft policy of the Central Bank will still be a strong driver of growth.
How Much Will Bitcoin Be Worth?
Predictions of the stars
• Michael Novogratz of Galaxy Digital Holdings Ltd – BTC to reach previous peak of $69,000 in about a year
• Matrixport – $125,000 until the end of 2024
• Standard Chartered – $100,000 until the end of 2024
• Arthur Hayes – $1 million by 2026
#Cryptocurrency
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