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Bitcoin is the most popular cryptocurrency in the world, the blueprint from which all others were created. However, that didn’t stop it from having a challenging 2022, when prices dropped in the digital asset market. Since the beginning of 2023, however, things have been on the mend, and the coin regained a significant amount of its previous value in a rally that saw it grow by nearly 90%. While loyal investors have remained dedicated to crypto, it’s still important to notice that engagement levels have constantly increased since Bitcoin began to fare better on the market.
As such, many are looking for new ways to add crypto to their portfolios, such as buying Bitcoin with a bank transfer. The advantage of this method is that you can make the purchase directly in your wallet without worrying about any additional deposits. For this reason, it has become a favourite among investors who prioritise ease and accessibility.
Record-breaking inflows
ETPs, exchange-traded products, have become increasingly popular among traders, causing considerable inflows and raising engagement on the network. Investors have been pouring in the capital at an extraordinary rate since June 15th. Recent data shows that the numbers increased from 25,202 to 196,824 in just four weeks. This is the second-largest growth in the history of Bitcoin, surpassed only by the inflows brought in by futures-based ETFs back in October 2021.
Total exposure is now the highest it has ever been since June 2022, right before the digital asset market began experiencing the most significant crypto winter in its history. ETPs are a comprehensive category of numerous listed products. All track an underlying financial asset. ETFs are a subtype that holds financial products placed within a certain theme.
All-time high
Since a bullish market trend has influenced Bitcoin, it makes sense that prices will continue to climb. However, it’s important to discuss exactly how much they are expected to grow. While some investors remain sceptical about BTC’s potential, others are certain that the crypto coin will exceed all expectations and surpass its previous values, including the ones in 2021, when the currency was at its heyday.
Data suggests that nearly 80% of American traders believe that Bitcoin will achieve a new all-time high, while almost 50% are confident that the value will surpass the $69,000 milestone. A lot of the certainty comes from the fact that the next Bitcoin halving event is only a year away. Generally, this event was correlated with price increases. Add to that the fact that the current market trend is bullish, and you’ve got some pretty clear indicators that the market is on an ascending trajectory.
Since its emergence on the market, Bitcoin has maintained its supremacy, remaining the largest coin in the world by market capitalization. None of the altcoins were strong enough to dethrone it. However, some believe that there’s a possibility that Ethereum, the second-largest crypto, might soon surpass Bitcoin.
Yet this remains unlikely, especially since Bitcoin’s rise appears consistent with growth and development. There have been similar predictions in the past, and none have amounted to anything, so it’s implausible that Bitcoin will lose its status anytime soon.
Turkey
Until reaching an all-around massive price, Bitcoin appears to be doing quite well in the Turkish digital asset market. Recently, the Turkish Lira achieved a record low compared to the US dollar, which was almost immediately followed by Bitcoin prices climbing among investors in the country. This isn’t a surprising occurrence since investors have observed that cryptocurrencies tend to fare better in times of economic unrest. When fiat currencies become devalued and unreliable, the digital asset market picks up speed, earning profits.
On July 18th, the Turkish Lira hit an all-time low ahead of a rate decision. As of July 19th, it was trading at 26.93 compared to the US dollar. This is only the continuation of a worrying trend that saw the Lira lose approximately 30% of its value against USD since January 2023. Back in October 2022, the inflation rate hit the highest levels it had ever had over the past twenty-four years, with an annual level of almost 80%.
Turkish traders began investing more capital in Bitcoin and discussing how it could protect them against inflation. This is especially given that BTC remains largely consistent, providing investors with the certainty that their capital won’t go down the drain.
Presidential elections
Economics is one of the most important aspects of politics, and the upcoming US presidential elections have outlined that very well. Since the beginning of 2023, the cryptocurrency environment has been at the centre of a controversy as regulatory pressures began mounting. While many claim the movements are the direct result of wanting to improve the market and provide a better, safer environment for traders, others believe it to be a disguised attempt at controlling digital assets and maybe even eliminating them.
However, some politicians have expressed support for cryptocurrencies. Recently, Democratic presidential candidate Robert F. Kennedy Jr. vowed to bring back the US dollar with Bitcoin if elected president. This is part of a larger plan of backing the dollar with what Kennedy deems as “hard currency,” including silver, platinum, gold, or Bitcoin. He explained that the process would be gradual, with around 1% of issued T-bills backed by these hard currencies.
Kennedy also declared that he would make conversions from Bitcoin to US dollars entirely exempt from any capital gain tax. This movement would boost investments and incentivize business owners looking to start development ventures. This is especially valuable to keep businesses in the US instead of seeking development in other pro-crypto regions such as Switzerland and Singapore.
However, the presidential candidate has also made some troubling remarks regarding the pandemic, which were viewed by fellow democrats as racially insensitive, which could impact the outcome of the elections.
Cryptocurrencies continue to change and adapt to the market. It remains as important as ever for traders to remain vigilant in order to protect their list of holdings and ensure consistent revenue.
Image source: https://unsplash.com/photos/7E3QGntO66M
