Bitcoin
Bitcoin Price Prediction – Forbes Advisor Australia
Bitcoin’s journey began in 2009, with the release of the bitcoin white paper by creator Satoshi Nakamoto. In its early days, BTC was valued at less than a cent.
Bitcoin’s early years were marked by steady growth and periods of rapid price appreciation, known as “bull runs”. One of the biggest bull runs saw the price of BTC rise from $4,000 to $69,000 in November 2021. Over the past 18 months, BTC has risen from $16,000 to a new all-time high of $73,000.
However, there were also periods of uncertainty, as Sciberras points out.
“During 2014 and 2017, we saw many proposed bitcoin ‘forks’ that divided the bitcoin community,” he says. Hard forks are changes to the blockchain network’s underlying protocol that essentially split a cryptocurrency into two. These forks represented pivotal moments in bitcoin’s history, with various factions of the community attempting to change the direction of BTC. Despite heated debates and a series of forks, bitcoin has persisted in its current form.
“Bitcoin that has survived these attempts to change it is a key contributor to where BTC is now, increasing its confidence and resilience,” says Sciberras.
“It has weathered many storms and attempts to change it, with bitcoin forks now a distant memory, comprising less than 1% of bitcoin’s total market value.”
In June 2023, BlackRock, the world’s largest asset manager, unveiled plans to start an exchange-traded fund (ETF) specifically for BTC. Several other institutions followed suit, with WisdomTree, ARK Invest and others filing their first application or updating existing applications shortly after BlackRock’s announcement. In January this year, 11 of the ETF applications were approved for trading in the US, pushing the price of bitcoin to reach a new all-time high of over $73,000. Since their inception, these ETFs have seen some of the largest inflows of any ETF in history, marking them as one of the most successful ETF launches ever.
Another defining characteristic of bitcoin’s price history is the halving event, which happens approximately every four years, and reduces the rate of new coin creation. O latest Bitcoin halving occurred on April 20, 2024, when the bitcoin blockchain surpassed block 840,000. The bitcoin issuance rate has now dropped to 3,125 BTC per block, taking annual bitcoin inflation well below 1%.
“We saw the price of bitcoin increase significantly a year before the halving and a year after,” says Sciberras.
Many investors see the halving as one of the most significant factors affecting the price of bitcoin. However, Sciberras is cautious.
“The jury is still out on what the halving price is or how important the event is in the grand scheme of bitcoin’s price trajectory,” he says.
“There is a theory that the four-year halving event is not as significant as many think and that, instead, its alignment with external liquidity cycles is what makes it appear to be a trigger for upward movement. of prices.”
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