For over a month and a half, bitcoin stock has been only been going in one direction – up. This is roughly a 50% increase, investors are left wondering how long it will continue in this direction.
Bitcoin, in the simplest terms, is a cryptocurrency. It isn’t held in the bank, but it is similar to regular money. It exists entirely digitally on the internet. In a way, bitcoin is similar to owning a credit card. Transactions can be made with bitcoin, only it is not recognized by banks or governments, and no one controls it.
According to research analysts, the most significant change in the price of bitcoin occurred on January 11, when an exchange-traded fund, or ETF, was approved for the first time for bitcoin by 11 stock exchanges on Wall Street.
In essence, this means traders easily will be able to buy and sell bitcoin through mutual funds, which will bring more money into this asset
The factors that led Bitcoin to its all-time success
The first reason for bitcoin’s rising success is straightforward. The largest asset managers in the world, companies such as BlackRock and Fidelity that manage approximately $14 trillion combined, market bitcoin to their clients. This is possibly the biggest development in bitcoin’s 15-year history. The current wave of new and institutional money is making its way to purchase bitcoin. In fact, bitcoin, which was looking for its way toward big institutional money, reached that goal when its stocks significantly rose last month.
The second reason for the increase in the price of bitcoin is technical. In about a month and a half, on April 20, 2024, an event known as the Bitcoin Halving is scheduled. This is a technical event that happens once every four years. Further, the amount of Bitcoin that is created each day has been cut in half, and as a result, Bitcoin has become harder to obtain as its supply is reduced. In other words, less Bitcoin in the market will lead to an increase in its demand, and therefore its price.
Professional investors are aware of this shift and there are estimates are that sophisticated money is already storming bitcoin. The significant recent increase in the purchase of bitcoin and its stock is due to these predictions.
