Bitcoin’s All-Time High in 2023
As of December 2, 2023, Bitcoin has achieved a significant milestone, reaching an all-time high for the year at $39,518. This impressive surge has marked two consecutive days of substantial growth, with BTC closing above $39k just a day after surpassing the $38k mark for the first time this year. This performance has placed Bitcoin as the 11th most valuable asset globally, closely trailing behind Warren Buffett’s Berkshire Hathaway (BRK-B), with predictions suggesting it might soon overtake and secure the 10th spot.
The Optimistic Outlook for Bitcoin
The recent upswing in Bitcoin’s value has sparked a wave of optimism among investors and crypto enthusiasts. Critics who doubted Bitcoin’s potential are now facing a reality where its growth trajectory is undeniable. This sentiment is further fueled by several key developments:
- Spot Bitcoin ETF Approval: Anticipated next month, this approval could significantly enhance Bitcoin’s accessibility to a broader range of investors.
- Resolution of Binance and FTX Saga: The conclusion of this high-profile crypto saga has likely contributed to market stability.
- Upcoming Bitcoin Halving: Expected in about four months, this event traditionally signals a bullish trend for Bitcoin.
- Record High BTC Stack: Bitcoin holdings are at an all-time high, indicating increased investor confidence.
Trading Dynamics & Risk Management
As Bitcoin trades into Monthly Supply and above November highs, traders are closely monitoring these trends. A retreat back into November’s range could signal a shift towards a risk-off approach, pending a bullish reversal at lower levels. In the meantime, the strategy involves riding the trend while maintaining tight risk controls as the market ascends.
The Role of Altcoins
Well-positioned altcoins with solid entry points are considered favorable, supporting a strategy of concentrated bets. However, any underperforming altcoins may be cut off to manage and tighten risks.
Rip VanWinkle’s Bullish Take on Bitcoin
Rip VanWinkle, a seasoned market observer, presents a bullish perspective on Bitcoin’s future. He notes that market expectations are more subdued this cycle compared to the last, which could set the stage for an unexpected surge in Bitcoin’s value. Key factors supporting this bullish outlook include:
- Decreasing Available Supply: For the first time, the available supply of Bitcoin is shrinking as we approach the halving.
- High Percentage Held by Long-term Investors: The proportion of Bitcoin held by ‘diamond hands’ is at an all-time high, indicating strong investor conviction.
- Influx of Large Capital Pools: Major financial entities are poised to inject substantial capital into Bitcoin.
- Central Bank Policies: With central banks likely to increase money printing to manage government debt, Bitcoin’s value could be positively impacted.
- Halving Event: The upcoming reduction in Bitcoin’s supply issuance could further drive its value.
- Global Adoption: Efforts to promote Bitcoin among heads of state, such as those by Excellion, could lead to more countries adopting it as legal tender.
Am I the only one who thinks that #BTC is gonna rip peoples faces off this cycle?
— Rip VanWinkle ⚡️ (@danieleripoll) December 2, 2023
I’ve been around markets long enough to know that they do not do what most people expect.
Case in point, last cycle everyone thought $100k was a slam dunk. We never got there. This cycle,…
Bitcoin ETFs
Understanding Bitcoin ETFs: A Bitcoin ETF is a type of fund that holds Bitcoin, Bitcoin futures contracts, put or call options on Bitcoin futures, or stocks of publicly traded Bitcoin miners. In the U.S., no Bitcoin ETF currently holds Bitcoin directly, but many financial institutions have submitted applications for a spot Bitcoin ETF. These ETFs provide investors with exposure to Bitcoin’s price movements without the need to buy the cryptocurrency through an exchange or manage private keys in a non-custodial wallet, which has been a significant concern due to instances of people losing access to their Bitcoin.
Legal Developments & Institutional Interest: In a landmark legal victory in 2023, the U.S. Court of Appeals for the D.C. Circuit sided with Grayscale in its lawsuit against the SEC‘s denial to convert the Grayscale Bitcoin Trust into an ETF. This decision is not only a win for Grayscale but could also impact other companies seeking to launch Bitcoin ETFs, including BlackRock and Fidelity. The interest in Bitcoin ETFs has been further fueled by renowned asset managers like BlackRock, WisdomTree, and Invesco, who have filed spot ETF applications, indicating a growing interest from institutional and corporate clients. This movement represents a significant step towards the widespread adoption of cryptocurrencies.
SEC’s Stance & Future Outlook: However, the U.S. Securities and Exchange Commission (SEC) has announced delays for several ETF applications, suggesting that the first spot Bitcoin ETF may not be approved until 2024. Investors are now focused on the deadline for the ARK 21Shares application, set for January 10. Despite these delays, the anticipation of ETF approval has not led to a significant market decline, indicating a resilient trend in the Bitcoin market.
A Bullish Horizon for Bitcoin in 2024
The current trends and developments surrounding Bitcoin paint a bullish picture. With fundamentals strongly favoring its growth and a market that’s ripe for surprises, Bitcoin could indeed outperform expectations in this cycle, potentially reaching new heights and further cementing its position in the global financial landscape.
Author Profile
- Lucy Walker covers finance, health and beauty since 2014. She has been writing for various online publications.
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