We are deep in the Q4 and the world’s oldest Cryptocurrency, Bitcoin, is still a topic of interest among investors, institutions and regulators in 2024. Basically, Bitcoin’s wild ride started from a small experiment back in 2009, and today, it holds its place as one of the most influential and profitable digital assets.
But again, what lies in store for this digital asset?
A Glimpse of Bitcoin’s Wild Ride
Much like any other investment instrument in the crypto market, the price of Bitcoin has always fluctuated fairly. Just how volatile is Bitcoin? From initially trading below a cent to achieving an all-time high of $73,000 in early 2024, Bitcoin has known both sides of the fence. On its own, Cryptocurrency has survived many adversities like market crashes, to come out even stronger.
Nicholas Sciberras, a senior analyst at Collective Shift, says, “Bitcoin surviving these attempts to change it goes a long way in contributing to where BTC is today, providing it with confidence and more resilience.”
The 4th Bitcoin halving took place on 20th April 2024 to lower the block reward to 3.125 BTC. This is in order to keeping the annual inflation rate below 1%. While many investors view the halving as a significant price catalyst, Sciberras remains cautious: “Increasingly, scepticism remains as to how much the halving is built in the price, or how significant the event is in the narrative of bitcoin prices.”
The Game Changer
The approval of spot Bitcoin ETFs in January 2024 was one of the greatest breakthroughs in the Crypto space. Through this, Bitcoin tapped into massive amounts of capital, with giants like BlackRock joining the Bitcoin rush. This institutional adoption could bring about continuous demand pressure all year round, pushing the prices up even more.
Sciberras points out that ongoing issues in the global economy, particularly in the banking sector, could work in Bitcoin’s favour.
In the 2024 financial global economy, there are challenges. The USA is at the brink of a banking crisis, and debt obligations are growing. In a well-known, reliable, ‘conditionally free’ and stable world where the rules of the game don’t easily change, the digital currency may come in handy.
Furthermore, continuous innovations like ordinals and BRC-20 tokens are creating a new need for block storage space on Bitcoin’s network. This should add value to its security and usefulness rather than a mere store of value in Bitcoin’s wild ride.
The Road Ahead
A glimpse into the coming years shows uncertainty in Bitcoin’s path but filled with potential. With figures like Cathie Wood of Ark Invest forecasting that Bitcoin will go for $1.48 million (€1.34mn) each by 2030 – it’s important to practice caution.
We can safely say that Bitcoin in 2024 has evolved from a fringe experiment to a mainstream financial asset. Coming in hard as a disruptor, its role in the global financial ecosystem will likely grow. However, this will be shaped by favourable technological innovations and macroeconomic trends, of course, shape this.
Overall, whether you’re a BTC hodler or a curious observer, you can be sure that the Bitcoin story is far from over.
Image Source: Adobe Stock
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used for legal, tax, investment or financial advice.
