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bitcoin (btc) is up 27% in the last month as euphoria around the possible imminent approval of bitcoin spot ETFs sent crypto markets into a frenzy.
However, despite that sharp rise, also fueled by bitcoin‘s upcoming halving in April and bullish predictions from heavyweight investors including Ark’s Cathie Wood and Fidelity, there are still strong reasons to buy the king of cryptocurrencies now, some analysts say.
They cite three key reasons for optimism about its price prospects. Each of them alone could be enough to fuel a new bitcoin bull run, but their convergence as they do now contributes to what Jan van Eck, CEO of $76 billion asset fund manager VanEck, calls it an “almost perfect operation.”
Here are those three key reasons:
Detect bitcoin ETF Approvals
The crypto industry has been trying to secure a spot bitcoin ETF since the Winklevoss twins submitted their first proposal in 2013. But the US Securities and Exchange Commission has stymied progress at every turn, citing objections since the lack of clarity to the lack of investor protection. to the inability to prevent market manipulation in bitcoin spot trading.
The situation changed dramatically in early summer 2023, when BlackRock (one of the world’s largest asset management companies and a leading investment management provider) submitted its first bitcoin ETF proposal.
The market reacted almost immediately by starting a price surge that took bitcoin back to $30,000 and then $35,000.
A historic legal victory by Grayscale Investments over the Securities and Exchange Commission (SEC) in August was also key to boosting optimism about regulatory approval. A court then ruled that the SEC’s decision to approve bitcoin futures ETFs, but not bitcoin ETFs, was “arbitrary and capricious.”
When the SEC allowed the appeal deadline to pass, the crypto industry became convinced that approval of spot bitcoin ETF products is just a matter of time.
ETF hype is a key factor behind bitcoin‘s price rise in recent months and also a key reason behind why many analysts expect its price to continue rising.
bitcoin Halving
The second reason why this may be the right time to buy bitcoin is the upcoming bitcoin block reward halving, which is scheduled for April.
Historical data shows that bitcoin price would rise several times more than its previous ATH during a specific period after the halving occurs. Around six to twelve months after the block rewards are halved, the coin begins to experience a rally that breaks all previous records and milestones.
Some in the crypto industry claim that this is just a coincidence and that the halving should not be taken as a sign of the next price increase. While there is no definitive evidence that it causes a price increase, there is not much to support the opposite claim either.
bitcoin as digital gold
Another reason to buy bitcoin right now is its status as digital gold and therefore a growing competitor to real gold.
bitcoin has everything it needs to take on this role. It has a limit of 21 million coins. So while central banks can print fiat money and that undermines its value, that cannot happen with bitcoin.
ARK Investment Management‘s Cathie Wood Says bitcoin (btc) Is a Better Deflation Hedge Than Gold or Cash, According to a Recent Bloomberg bitcoin–btc-is-digital-gold-as-deflation-hedge”>report.
“bitcoin is a hedge against inflation and deflation because there is no counterparty risk and institutions barely participate,” Wood said, speaking on Bloomberg’s “Merryn talks about money” podcast. “It is digital gold.”
With bitcoin, there is also no need to pay for its storage and security, unlike physical gold, which must be stored in vaults.
bitcoin Themed Alternatives
A bitcoin bull run will likely lift all crypto boats, although some more than others. Those that stand to gain the most are likely to be the so-called bitcoin alternatives, especially those related to the three reasons cited above. Here are two coins currently in pre-sale that stand out:
bitcoin Minetrix (BTCMTX)
The first of the two bitcoin-themed alternatives is bitcoin Minetrix (BTCMTX), a cloud mining project for bitcoin. The project introduces its token, BTCMTX, which users can purchase and then stake on the platform. Doing so grants them credits that can be used to mine bitcoin.
The platform and mining process are fully decentralized and transparent. The project was designed to restore cryptocurrency users’ faith in cloud mining. In the past, countless cloud mining platforms emerged that offered significant profits to those who purchased their mining plans.
Still, over time, many turned out to be fraudulent, while some failed for one reason or another.
bitcoin Minetrix aims to assure users that legitimate cloud mining still exists and that its platform is one of them. You have a well-written white paper; has been audited and is fully transparent and decentralized.
So far, its pre-sale has already raised $3.6 million, suggesting that its efforts have paid off.
bitcoin ETF Token (BTCETF)
The second bitcoin-themed cryptocurrency is the bitcoin ETF Token (BTCETF).
Explaining the fifth and final milestone for #BitcoinETF. 5️⃣
This moment will show the strength and stability of bitcoin.
When the price of one bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin closes a daily candle above $100,000, 5% of the total #Symbolic the supply will be burned and the transaction tax will be reduced from 1% to 0%. pic.twitter.com/8nYjTkDl83
– BTCETF_Token (@BTCETF_Token) November 7, 2023
It is a cryptocurrency whose fate is tied to the regulatory approval of bitcoin spot ETFS. The project closely follows any developments related to the ETF and has a number of goals and milestones, including the first approval of the ETF, the launch date of the ETF, ETF assets reaching $1 billion, and bitcoin reaching the price of 100,000 dollars per coin.
bitcoin ETF Token is an ERC-20 token that can be staked on the project’s smart contract to earn passive rewards at a dynamic rate. It was created to celebrate the long-awaited arrival of bitcoin ETFs in the US and claims that those who will benefit the most are cryptocurrency users who purchase BTCETF before royal approval occurs.
So far, its pre-sale has raised over $37.8k in just a few days, selling BTCETF at $0.005 per unit. Those interested can purchase the token with eth, USDT or their credit/debit card.
Related
- Audited by Coinsult
- Secure and decentralized cloud mining
- Earn free bitcoin daily
- Native Token on Pre-Sale Now – BTCMTX
- Staking Rewards: Over 100% APY
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