Bitcoin is still at the forefront of the cryptocurrency world – but with its unpredictable nature, one must ask: will it keep on rising? Or has it peaked only to fall? Although volatility accompanies it, there are grounds for thinking that Bitcoin and the wider cryptocurrency market are well positioned over the longer term – so what direction might things go in from here?
Based on Statista, in March 2024, Bitcoin reached an all-time high of more than $73,000 – thanks to the arrival of Bitcoin ETFs (a boon to be sure). It’s similar to the 2021 surge but backed by institutional interest, which has fuelled Bitcoin’s growth in the past (and might well in the coming years), as was seen when Tesla announced its investment of $1.5 billion in Bitcoin. On the downside, Bitcoin has not traveled a smooth road. By September 2024, its price fell to around $65,000, due in part to the FTX collapse.
Bitcoin, though, is still an iconic pillar here. With more than 89% of the 21 million Bitcoin that will ever be produced having already been mined, many investors believe its value can only rise – after all, we’re looking at serious supply scarcity here. As we approach 2040 and the coin supply dwindles further, it is thought that this might drive up demand even more.
Bitcoin’s volatility is closely associated with the behavior of large investors, or “whales,” who own 92% of all the float. A single large transaction from these whales might jolt the market significantly. This makes it difficult to predict price moves compared to traditional markets. Additionally, smaller Altcoins are often affected by these mechanics as some crypto pump and dump groups contribute to bursts of short-term growth.
When it comes to such mechanisms, Bitcoin is far less vulnerable – but still, there is an undeniable scourge to this field through community. Also contributing to price increases are schemes designed around adding new layers to how we do things.
The crypto market is expected (again according to Statista) to reach $56.7bn in 2024 — but then fall back somewhat in 2025. With the advent of more users adopting cryptocurrency, Bitcoin is likely to rise slowly yet surely up from its current level. In 2025, the number of users worldwide who will be using crypto is expected to reach 861 million (so it’s definitely growing in size and utility) — despite its many ups and downs, the attraction of bitcoin as an investment commodity still lies in its scarcity compared with fiat currencies.
Unlike regular currencies that can be printed at will, Bitcoin has a fixed supply limit which is bound not to increase but rather cut off after a certain point in time. Hardwired scarcity was a key reason for many people to believe that Bitcoin will keep on rising.
In this turbulent and experimental market, applied research into blockchain technology likely has great potential; it may just pay off as the shot-calling multitudinous players make it richer. Disruption after disruption also serves as a healthy reminder to the industry’s professional market players of this technology’s contributions and survival. With different sections meeting underneath one roof, new types of decentralized applications that operate over traditional Internet and service models are sprouting up. These developments demonstrate the possibilities for blockchain as a new infrastructure — whatever happens to Bitcoin itself.
The adoption of cryptocurrencies will grow in the coming years — with user penetration rates worldwide capping out at 11% by 2025 (as outlined by Statista above). The U.S., perhaps not surprisingly, is the biggest cryptocurrency revenue generator and that’s likely to continue, at least for the time being. The growth is fueled by both individual investors and institutional players — illustrating the broad appeal of digital assets — and as financial institutions and tech companies continue to explore blockchain applications, the market will likely see more widespread adoption.
While Bitcoin’s price history may experience some short-term drops, the long-term outlook is optimistic, despite what some might say!
Bitcoin and the broader crypto market are poised for future growth, despite ongoing developments in the market that create episodes of high volatility. The fixed supply of Bitcoin, combined with increasing institutional and retail interest, means any short-term dips may simply be furthering the expansion of usage. Innovations like the Bitcoin BlockDAG and the explosive growth in user numbers for cryptocurrency all add signs of a positive future ahead.
To find out about the latest, such as how Bitcoin BlockDAG is affecting the market, see this article. As the cryptocurrency landscape develops, keeping an eye out for the latest developments and staying in touch can make a difference in your investment experiences.
This post was last modified on Nov 07, 2024, 11:24 GMT 11:24