Bitcoin Surges 139% in 2024, Poised to Surpass Gold Amid Growing Institutional Adoption
December 18, 2024The anticipated introduction of new ETFs utilizing crypto derivatives on U.S. exchanges is expected to provide investors with more options and enhance market liquidity.
Skepticism remains regarding Bitcoin's fixed supply, with industry leaders questioning whether it will truly remain capped at 21 million.
The spot-bitcoin ETF market is on track to potentially surpass gold in total assets under management, highlighting a significant shift in investment strategies.
Debate continues regarding the implications of a U.S. Bitcoin reserve, with some experts warning it could undermine Bitcoin's decentralized nature, while others see it as beneficial for the crypto market.
Proponents argue that a strategic Bitcoin reserve could serve as an inflation hedge, bolster the U.S. dollar's value, and help reduce the national deficit without raising taxes.
Countries such as Tonga, Paraguay, and Panama are considering adopting Bitcoin as legal tender, following El Salvador's lead, which could enhance financial inclusivity and attract investment.
Bitcoin has experienced a remarkable surge of approximately 139% since the start of 2024, attributed to the high demand for U.S.-based ETFs, interest rate cuts by the Federal Reserve, and Donald Trump's recent presidential victory.
As Bitcoin approaches a closing price near $110,000 for 2024, projections suggest it could reach $200,000 by the end of 2025, reflecting its growing acceptance in mainstream finance.
Despite recent price pullbacks, experts believe the crypto market has developed internal momentum, making it less susceptible to external influences compared to previous cycles.
Analysts note a growing trend of corporate adoption of Bitcoin, particularly strategies that integrate it into treasury reserves, which could further solidify its market position.
Increased involvement from central banks and corporations is expected to drive Bitcoin's value higher, indicating a positive outlook for the cryptocurrency's future.
The potential establishment of a U.S. Bitcoin reserve could not only enhance Bitcoin's market position but also help the U.S. maintain its leadership against global competitors, particularly China.
Summary based on 31 sources
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Sources
Forbes • Dec 19, 2024
BlackRock Just Quietly Confirmed A Devastating Bitcoin Price BombshellBusiness Insider • Dec 19, 2024
Is it too late to buy bitcoin? Why some Wall Street experts say no — and 4 ways to start investing now.Yahoo Finance • Dec 18, 2024
Tesla, Inc. (TSLA) Among Companies Hoarding Bitcoin Like There’s No TomorrowYahoo Finance • Dec 18, 2024
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