Many participants in the crypto community follow the rates of the leading currency on the market - Bitcoin (BTC), whose development is copied by most altcoins. Users believe that the cryptocurrency has positive prospects ahead. Among the main arguments for the growth of Bitcoin, 8 main points can be mentioned, which the editors of BeInCrypto summarized in one overview:
- Cryptocurrencies continue to conquer the financial markets. A few years ago, it was hard to imagine that digital assets would be on the same level as national currencies. Today, Bitcoin is the official means of payment in El Salvador, along with the US dollar. People all over the world are discovering cryptocurrencies as an alternative to morally obsolete fiat currency. For example, the Russians use digital assets to circumvent financial sanctions. Many Africans have found in cryptocurrency a solution to preserve savings due to the devaluation of the national currency.
- The market can expect the approval of the first spot bitcoin-ETF in the US in the near future. This tool, according to MicroStrategy founder Michael Sailor, could absorb trillions of dollars. BlackRock has renewed efforts to introduce a bitcoin-ETF in the US. We previously covered why this tool is needed and how it can affect the market.
- In 2024, the next bitcoin halving awaits us. As history shows, this event triggers bullish market cycles. We have previously covered in detail the possible impact of the Bitcoin halving in 2024 on the crypto sector and how to profit from it.
- In an unstable geopolitical environment, cryptocurrencies appear more attractive. While some countries try to suppress inflation and others to solve conflicts, cryptocurrencies continue in predictable cycles that "determine" halvings. The cyclicality of the digital asset market can be illustrated, for example, with the "rainbow" chart of Bitcoin. The attractiveness of cryptocurrencies compared to traditional alternatives is another argument for the possible growth of Bitcoin.
- Crypto markets are predictable. The cyclicality of the digital asset market is the basis of its predictability. History shows that Bitcoin, and subsequently most other coins, resets its all-time high record roughly every four years. The development of the cryptocurrency exchange rate can also be followed in the rainbow chart above.
- The status of Bitcoin is clear. The US Securities and Exchange Commission (SEC) considers BTC for the goods. In 2023, more than 60 coins were included in the "black list" of cryptocurrencies, which the regulator considers to be illegally issued securities. Regulatory transparency makes Bitcoin more attractive than altcoins, increasing the odds BTC increase.
- Bitcoin has proven its effectiveness as a tool to protect savings against inflation. Central banks around the world can print new money uncontrollably. Flooding the market with new currency issues leads to its devaluation. Meanwhile, the market continues to look for tools to protect against inflation. And one of them is Bitcoin.
- No one has abolished FOMO (fear of missing out on an opportunity). This term describes the phenomenon where people fear missing out on an opportunity to invest or participate in something potentially profitable. FOMO has already "started" the digital asset market several times and has become the cause of its active growth. It can be assumed that the crypto markets are waiting for new waves of this phenomenon, which will support the positive development of Bitcoin.
