The cryptocurrency sector weathered over two tumultuous years, sparked by a shift from risk assets amid 2021’s recession fears. The Terra blockchain’s collapse triggered a cascade of bankruptcies, causing a market plunge, losing over $2 trillion.
Yet, Bitcoin (CRYPTO: BTC) revitalized the market recently, fueled by two key factors: impending spot Bitcoin exchange-traded funds (ETFs) approval and the upcoming reduction in Bitcoin mining rewards later this year.
The first catalyst materialized with the U.S. Securities and Exchange Commission approving 11 spot Bitcoin ETF applications, including BlackRock and Fidelity’s proposals. Analysts anticipate a surge in interest, potentially propelling Bitcoin’s value, with some Wall Street experts predicting a tripling or quadrupling by 2025.
Spot Bitcoin ETFs offer direct exposure to Bitcoin, sidestepping the complexities of crypto exchanges and wallets. The streamlined accessibility through existing brokerage accounts is expected to attract both retail and institutional traders, potentially driving demand and, consequently, Bitcoin’s price upward.
Bitcoin’s price, influenced by supply and demand dynamics, hinges on accessibility provided by spot Bitcoin ETFs. Should these translate into heightened demand, the cryptocurrency’s value may witness significant growth in the coming months and years.
Several Wall Street analysts, including Gautam Chhugani, Geoff Kendrick, and Tom Lee, project substantial upside potential for Bitcoin, ranging from $150,000 to $500,000, fueled by factors such as reputable financial
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“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