What’s next for Bitcoin is pending on a few factors, but any moment could change things.
The market is playing patient to see what Bitcoin will ultimately do.
Don’t let a short stint of silence mislead you. At any moment, mayhem could hit Bitcoin again and send prices in either direction. However, we’re waiting for Ether ETFs and the SEC’s decision about them.
Here are two leading issues to cause even more turmoil in the crypto market.
– Options Trading—As Bitcoin ETFs make a name globally, bitcoin options are suspected to bring even more liquidity into the system. With options, you not only trade price derivatives like ETFs, but you get the “option,” not the obligation, of buying or selling at a later date.
– Hong Kong ETFs—China is currently eyeing the ETF market, and rumor has it that the Asian behemoth is working an angle to make Bitcoin ETFs available to its own population. As we saw ETFs boost Bitcoin in the USA, China’s entry into the market is poised for substantial gains.
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Why Is Bitcoin Waiting?
Simply stated, there’s a lot going on, and smart, institutional investors are waiting to see how the dust settles. They understand the risks of moving in the market too fast or too soon.
What investors, like us, are seeing is a price floor on Bitcoin that’s held up since March 5, 2024, making a solid marker to work from. Though no one foretells the future, price patterns do work.
For each time Bitcoin hit $60,000 after racing to $75,000, the $60,000 mark acted as a reliable support. This means that you can expect $60,000 to be hit again or to be avoided entirely.
Bringing “the Supply Shock” Into the Mix
Investors are also anticipating a supply shock since Bitcoin’s recent halving.
What does that mean? It means chaos when exchanging Bitcoin at the prices we now see. When the supply of any product, commodity or service can’t meet demand, prices will rise.
This happens when financial markets get flooded with buy orders, but no one is selling to meet the demand. Those who do sell, however, will only do so if the buyers are willing to pay a premium.
This is because the sellers realize that there’s scarcity in the market, so they know that selling is actually a risk. Why? Because buying your Bitcoin back in a supply shock is near impossible.
What’s Next for Bitcoin’s Efficiency
Now that miners are earning half of what they did, specialists believe that miners will be less motivated to see what’s next for Bitcoin. Keep in mind that Bitcoin mining is directly tied to Bitcoin transactions.
If the mining stops or slows, then the rate that transactions are completed in will also be affected. Though no signs of this have appeared yet, it should still be considered a reality.
The next time you consider investing into Bitcoin, make sure to use a reliable crypto exchange. Start with this overview of Kraken, and learn all of the tricks to profiting from live crypto prices.
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- Great customer support
- Secure exchange
- Lower fees with Kraken Pro
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