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After approaching its record, Bitcoin fell to about USD 66,200: how much can it reach according to specialists - Infobae
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Tras acercarse a su récord, el Bitcoin bajó a unos USD 66.200: a cuánto puede llegar según los especialistas
La principal criptomoneda se ubica cerca de su máximo histórico de 2021. En el año se revaloriza casi un 50 por ciento
www.infobae.com
March 04, 2024
The main cryptocurrency is close to its all-time high of 2021. During the year it appreciates almost 50 percent
Bitcoin is one of the best investments in the first part of 2024.
In the first part of the year, Bitcoin appreciated rapidly, 50% compared to the close of the previous year, and aims to reach a new all-time high, being close to the USD 69,000 area that it reached in November 2021.
This Monday it exceeded USD 67,000 at 2:30 p.m., although an hour later it fell to USD 66,189. Due to its level of capitalization, this digital currency occupies the first position among the most popular, with a circulation valued at 1,287 billion dollars, twice the GDP of Argentina.
The main cryptocurrency is approaching the all-time closing maximum of a session that it reached on November 9, 2021, when it stood at $67,729. On the following day it registered the highest price in its history during daily trading (intraday) at $68,991.85.
The evolution of Bitcoin
The driving force behind the bullish move remains the recent approval of Bitcoin Cash ETFs, vehicles that continue to acquire the cryptocurrency in significant quantities. Since their launch, Bitcoin Spot ETFs have accumulated holdings that represent more than 3% of all Bitcoin in existence today. Therefore, the analyst expects the current trend to continue and anticipated that it is possible that it will reach a new all-time high.
How high can the price of Bitcoin go?
A Coindesk report stated that “signals from the futures market indicate that new increases may occur. Open interest, or the number of unsettled futures bets, hit an all-time high of $27 billion, according to data from Coinglass . The increase in interest is a sign of the entry of new money into the market.”
From Coindesk they highlighted that “the market capitalization also reached the record figure of 2.8 trillion dollars, exceeding the level of 2.7 trillion established in November 2021, according to data from multiple sources. In the last 24 hours, more than $60 million in short positions, or bets against the rise in Bitcoin prices, were liquidated, which likely contributed to the rise in prices by covering losing positions.
Some traders expect “Bitcoin to hit its all-time high of $69,000 in March, and say institutional demand and the initial success of spot Bitcoin exchange-traded funds (ETFs) will likely drive prices.”
“With 54 days left until Bitcoin halving and with the expectation that the Fed will cut interest rates in the middle of the year, prices have a support level at $50,000 and can fluctuate to reach all-time highs in March,” explained Ryan Lee , chief analyst at Bitget Research. ”The trading volume of nine Bitcoin ETFs in the US also reached a new high of $3.2 billion last week, indicating that institutions have strong bullish sentiment,” he added.
Bitcoin was the first cryptocurrency to be launched on the market. Created by Satoshi Nakamoto in 2008, this digital currency promoted a libertarian ideal and sought to put traditional monetary and financial institutions in check after the global financial crisis that occurred that year.
Bitcoin (BTC) uses cryptography to guarantee that its operations are not regulated by any banking institution or body, which in turn has put the currency in the middle of a debate about its volatility, since by not requiring third parties it has been accused of facilitating illegal activities such as fraud.
Despite skepticism, there are those who have opted for bitcoin: El Salvador became the first country to adopt this cryptocurrency as legal currency on June 9, 2021, and Prosperous Honduras, a special autonomous zone in Central America, has also done the same.
Physical representations of various cryptocurrencies. (REUTERS/Dado Ruvic)
What are cryptocurrencies
Cryptocurrencies are no longer foreign elements and have begun to enter everyday language, awakening the interest of those who are concerned about finances or even reaching the point of being legalized in some regions of the globe.As their name indicates, virtual currencies use cryptographic or encryption methods to carry out transactions in a deregulated system and, most of them, through blockchains, which distances them from traditional models where Banks function as intermediaries.
Physical representations of various cryptocurrencies. (REUTERS/Dado Ruvic)
Its innovation has caused many people to be interested in investing in digital currencies, since their value has grown considerably in recent years, with Bitcoin, Ethereum and Dogecoin being the most popular and those with the highest capitalization in the market.
Each of these units are created through a process called “mining” and users can acquire them through various agents or digital currency exchanges, and then store them in “cryptographic wallets” or make various transactions with them through unique keys.
Although it was in 2009 when Bitcoin entered the market as the first cryptocurrency in the world, the truth is that they are just experiencing a boom in the financial field, so their use is expected to increase in the near future.
The risks of virtual money
Cryptocurrencies have various elements that make them unique: not being regulated by any institution; not requiring intermediaries in transactions; and almost always use accounting blocks ( blockchain ) to prevent new cryptocurrencies from being created illegally or transactions already made from being altered.However, by not having regulators such as a central bank or similar entities, they are accused of being unreliable, volatile, promoting fraud, not having a legal framework that supports their users, allowing the operation of illegal activities, among others. .
Presentation of a bitcoin ATM in San Salvador, capital of El Salvador.
Although it could be a paradox, at the same time cryptocurrencies guarantee security to their miners regarding the network in which it is located (network) and which implies code management; Breaking this security is possible but not so easy to achieve, since whoever tried it would have to have computing power greater than even that of Google itself .
Whoever invests in this type of digital assets must be very clear that this form brings with it a high risk to capital, because, just as there may be an increase, it may also unexpectedly crash and wipe out the savings of its users.
To store them, users must have a digital purse or wallet, which is actually software through which it is possible to save, send and make transactions with cryptocurrencies. In reality, this type of wallet only stores the keys that mark a person's ownership and right to a certain cryptocurrency, so these codes are the ones that should actually be protected.
