Bullish Analysts Predict Further Bitcoin reached Record Heights!
The digital currency Bitcoin has been making headlines recently, with its price steadily increasing and significant developments in its adoption by various nations and financial institutions.
In a surprising turn of events, the US core inflation rate month-over-month came in lower than expected at 0.1%, instead of the anticipated 0.3%. This unexpected dip in inflation has boosted Bitcoin's price, with the cryptocurrency currently trading around $110,000. Bitcoin has been trading above this milestone for an impressive 33 consecutive days, a record it previously achieved for only 6 days in a row.
Meanwhile, the likelihood of a new country buying Bitcoin this year is below 50 percent, according to the betting platform Polymarket. However, several countries have already expressed interest or plans to hold significant amounts of Bitcoin or establish Bitcoin reserves. Among them are El Salvador, which already holds over 6,000 Bitcoins, and the USA, which has a strategic Bitcoin reserve nearing similar amounts. Kyrgyzstan is legislating to establish a state crypto reserve expected to take effect in 2025, while Paraguay is considering creating a strategic Bitcoin reserve.
The Kingdom of Bhutan, Pakistan, and the UK have also shown interest in holding significant amounts of Bitcoin or establishing Bitcoin reserves. These developments suggest a growing acceptance of Bitcoin as a legitimate form of currency and store of value.
In the institutional investment arena, Bitcoin ETFs have been making waves. BlackRock's Bitcoin ETF (IBIT) has been the ETF to reach the $70 billion in assets under management mark the fastest. Bitcoin spot ETFs now hold more than 1.2 million BTC, worth around $130 billion. Since their approval in January 2024, these ETFs have recorded $45 billion in cumulative net inflows.
The adoption of Bitcoin ETFs by wealth managers, who manage trillions of dollars in capital, is still in a "very early" stage. However, demand for Bitcoin ETFs is growing, particularly among institutional investors and wealth managers. Robert Mitchnick, head of digital assets at BlackRock, emphasized this growing demand.
Bo Hines, the leading director of the "Presidential Council of Advisers for Digital Assets," stated that the US wants to acquire as many Bitcoins as possible in a budget-neutral way. Hines also highlighted the promising option of Bitcoin-backed government bonds, which could usher in a new era for the over $300 trillion global bond market and Bitcoin.
Hunter Horsley, CEO of Bitwise, believes that once Bitcoin breaks through certain levels, no one will sell their bitcoins, and the price will continue to rise due to increased borrowing. Michael Saylor, another Bitcoin bull, believes that Bitcoin has overcome its riskiest phase and is likely to reach $1 million.
Despite these positive developments, it's important to remember that the world of cryptocurrency is still volatile and unpredictable. As always, potential investors should do their due diligence and consider their risk tolerance before investing in Bitcoin or any other cryptocurrency.
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