2023-11-07 12:09:44
A year following the stock market crash, the price of bitcoin rose by nearly 70%. But what comes next? Sam Bankman-Fried was found guilty of all seven counts of fraud and his first trial has ended. The founder and former CEO of FTX can face up to a hundred years in prison. Last November, the collapse of FTX started a dark crypto winter. And regulators sought to strangle the industry. Now, a year later, the possibility of FTX returning nearly 90% of customer funds is very real. According to CoinDesk Indicies, BTC PRICE is now around $35,000, compared to last year’s coldest crypto winter day when it hit a low of $15,625. Bitcoin’s growth is driven by its use – and the ETF It didn’t take long for bitcoin to return to where it was before the crash. Macroeconomics certainly played a role in bitcoin’s rapid recovery, but so did the growing field of utility applications built around the Bitcoin blockchain. The price of bitcoin, whether it will be 200k or 400k, will not only be due to speculation, but because people will see the value in the utility of Bitcoin. – said Jason Fang, managing partner of Sora Ventures. Fang believes that bitcoin’s future gains will primarily be demonstrated by its technology. According to him, the advantage lies partly in decentralization. It is questionable how decentralized Ethereum is, or the leading layer-1s like Solana, when both are heavily dependent on cloud providers like Amazon AWS. As Fang points out, both – and other layer-1s – rely on their foundations (eg The Solana Foundation) to develop technology, which is a big problem if they get into trouble. They are centralized in technology and finance. If one of them goes bankrupt, they’re in trouble. Bitcoin, on the other hand, is funded by miners, who are motivated by utility to support the network. – He told. “It makes for a more profitable business for them. Bitcoin’s journey is unique and independent of Ethereum compatibility, which gives it a stronger narrative.” Not that ETH PRICE or Sol have underperformed in the past year. ETH is up 17% and Sol is up 26% year over year. Bitcoin, on the other hand, rose by 70%. That’s because, as Lucy Hu of Metalpha explains, the market is anticipating an ETF and a move by the Fed. Bitcoin’s price will still be determined in the short to medium term by the approval of ETFs, a potential rate cut by the Fed, bullish sentiment from institutional investors such as Microstrategy, and the halving event in the first half of next year. – He told. The common view now is that spot bitcoin ETFs are likely to be approved as early as January 2024, and a number of big names, including BlackRock and Fidelity, are preparing their offerings. Strong Year-End Trading Volumes Traders’ attention has been drawn to a particular ETF that is months away from approval but is enjoying renewed interest from both institutional and retail investors. Crypto trading has been slow for most of the year, with crypto spot market activity falling to a 4.5-year low in September. But something changed in late October as the ETF story picked up steam and the market softened. Trading volumes soared. By the end of the month, crypto investment funds had registered the largest inflow in 15 months, $326 million. Bitcoin has proven its resilience, especially following the FTX crash – it hasn’t gone to zero, which shows that it’s not just some scam. “It’s here to stay,” Fang said. “On the other hand, many top 20 tokens are still in their infancy and have not yet faced a real bear market. However, Bitcoin is expected to survive several downturns and survive for a long time,” he continued.
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