Bitcoin's Milestone Birthday: Spotlight on Spot ETFs and the Upcoming Halving
9 January 2024
On January 3rd, Bitcoin celebrated its 15th birthday, and 2024 seems to mark a major milestone regarding its mainstream adoption. Ten of the biggest hedge funds in the world have applied for a Spot ETF for Bitcoin, and SEC approval could now happen at any moment.
Last month at the Next Block Expo in Berlin, we asked crypto and web3 professionals what they think about Blackrock, Fidelity, and other hedge funds trying to enter the Bitcoin market, and whether they view it as a positive or negative development. Here is what they had to say:
The diverse opinions reflect the complexity of integrating traditional financial institutions into the decentralised crypto market. While their involvement can bring several benefits like increased adoption and investment, it also raises concerns about market manipulation and a shift away from the decentralised ethos of cryptocurrencies.
However, this integration could also pave the way for innovative collaborations that blend the strengths of both sectors, potentially leading to a more robust and diverse financial ecosystem.
A notable example of this positive synergy is VanEck's recent commitment to donate 5% of its profits from its Bitcoin ETF to Bitcoin core developers for the next 10 years, demonstrating a tangible investment back into the foundational technology of the industry.
Bitcoin's Continued Dominance: A Foregone Conclusion or a Shifting Paradigm
Following the bullish developments and the fact that Bitcoin managed to maintain its market cap dominance, will it continue this way, or will other cryptocurrencies gain more prominence in the future? We asked this question to professionals at the Next Block Expo, and here's what they had to say:
The opinions gathered clearly paint an optimistic future for Bitcoin. While acknowledging the dynamic and diverse nature of the crypto market, the prevailing consensus leans towards Bitcoin maintaining its dominant position in the market.
Professionals particularly highlight Bitcoin's decentralised nature, unmatched brand recognition, and its status as the first cryptocurrency as main factors underpinning this assessment. This collective sentiment underscores Bitcoin's sustained value and growing influence, even as the world of digital assets continues to evolve rapidly.
Forecasting Bitcoin's Future: This Year's Price Predictions Unveiled
Even though many Bitcoiners stopped calculating in fiat money when assessing their holdings (1 Bitcoin = 1 Bitcoin), there are at least two major developments in 2024 that are very bullish and make it interesting to examine the potential price outcome for Bitcoin in 2024.
One is the Spot ETF for Bitcoin, which would allow significant funds from companies and institutions to flow into Bitcoin. The other is the Bitcoin halving this year, which will cut the mining rewards in half, from 6.25 Bitcoins per mined block to 3.125 Bitcoins.
Michael Saylor put it as follows: "The ETF will be a demand shock for Bitcoin, and the Halving will be a supply shock."
We asked professionals for their price prediction for this year:
While there's widespread anticipation for Bitcoin to potentially reach or even surpass 100K this year, it's recommended to also look beyond these price speculations. The strength of Bitcoin lies in its innovative technology, which holds the potential to revolutionise our financial system.
This technology is not just about market value; it's about paving the way for a more equitable and inclusive financial world, demonstrating how digital currencies can contribute to broader societal changes.