Bitcoin, the leading cryptocurrency, has long been synonymous with massive profits and dramatic price swings. The latest rally, which saw the price soar to $90,000 in November 2024, has captured the attention of investors and traders alike.
Bitcoin’s price action in the past month has been nothing short of impressive. Since mid-October, Bitcoin has surged by nearly 40%, climbing from around $66,800 to its recent high of $90,200. For many, this surge has renewed interest in Bitcoin, leading to more discussions around whether this rally signals a continued bull run or if the cryptocurrency is due for a correction.
However, while this recent surge is impressive, it’s important to keep perspective. The pace of Bitcoin’s growth in Q4 2024, which has seen quarterly gains of about 36%, still lags behind the explosive returns Bitcoin achieved in its earlier years. For instance, in early 2013, Bitcoin posted quarterly returns of over 539%. That kind of growth is something we haven’t seen in recent years, though the market has matured significantly since then.
Interestingly, one of the key indicators suggesting that this rally may still have room to run is the level of “realized profits” in the market. According to on-chain data from Glassnode, Bitcoin’s realized profit volumes have been averaging around $1.56 billion per day in the current rally. While that sounds like a lot, it’s only about half of what was seen during previous all-time highs. This indicates that many investors are still holding onto their Bitcoin, likely expecting even bigger gains in the future.
Bitcoin reached a new milestone on November 11, 2024, when it posted a remarkable single-day gain of $8,400. This surge came on the back of renewed interest in the cryptocurrency following the results of the U.S. presidential election. Such dramatic moves are reminiscent of Bitcoin’s explosive rise in 2017, but there are key differences this time around.
Unlike in 2017, when retail investors and enthusiasts largely drove the market, today’s Bitcoin landscape is dominated by institutional investors, governments, and more established financial entities. This shift has resulted in a market that, while still volatile, is far less unpredictable than during Bitcoin’s earlier bull runs. In previous cycles, Bitcoin’s rapid price increases were often accompanied by huge profit-taking days, with daily realized profits hitting as much as $3 billion during major bull markets. In contrast, the current market has not yet reached these extreme levels, suggesting a more cautious but steady approach by investors.
One high-profile figure who remains bullish on Bitcoin is Robert Kiyosaki, the author of the best-selling personal finance book Rich Dad Poor Dad. Kiyosaki recently shared his plans to continue buying Bitcoin until its price reaches $100,000. His endorsement of Bitcoin aligns with the growing institutional interest in the cryptocurrency, as well as the wider recognition of Bitcoin as a legitimate financial asset rather than a speculative bet.
Kiyosaki’s statement is a clear indication that Bitcoin is gradually being seen as a store of value, much like gold or other traditional safe-haven assets. This shift could contribute to further price appreciation as more institutional players enter the market.
As Bitcoin continues its upward trajectory, many investors are wondering whether it will break its previous all-time highs and deliver another round of triple-digit returns. While predicting Bitcoin’s price movements is notoriously difficult, there are a few key factors that could influence its future performance.
First, the potential creation of a U.S. Bitcoin reserve has been a topic of discussion in recent months. If this initiative were to gain traction, it could lead to increased demand for Bitcoin, further solidifying its place as a key asset in the global financial system. Moreover, growing institutional support, coupled with more favorable regulatory environments, could pave the way for continued growth in the coming years.
At the same time, it’s essential to remember that Bitcoin is still a volatile asset, and the crypto market is prone to sudden shifts. Price corrections, although less dramatic than in previous cycles, remain a possibility, and Bitcoin investors should be prepared for fluctuations.
One of the most significant shifts in the Bitcoin market over the last few years has been its evolution from a speculative asset to a more established financial instrument. Institutional adoption, the growing interest from governments, and the increasing recognition of Bitcoin as a legitimate store of value have all contributed to this transition.
In 2024, Bitcoin is no longer viewed as the “wild west” of cryptocurrencies. It is being embraced by traditional financial institutions, with more hedge funds, family offices, and public companies investing in Bitcoin as part of their diversified portfolios. This growing institutional backing is changing the narrative around Bitcoin, positioning it for long-term growth and mainstream adoption.
In conclusion, Bitcoin’s impressive rally in Q4 2024 has many wondering whether the cryptocurrency is on the cusp of a new bull run. While the gains so far have been noteworthy, they still fall short of the massive returns seen during Bitcoin’s earlier years. However, several factors, including institutional support, regulatory developments, and the potential creation of a U.S. Bitcoin reserve, suggest that Bitcoin may have more room to grow.
Whether or not Bitcoin can break its previous all-time highs and deliver another round of massive profits remains uncertain. But one thing is clear: Bitcoin is no longer just a speculative asset. It is becoming a more stable, respected player in the global financial ecosystem, and its potential for future growth is undeniable.
For those watching Bitcoin closely, now might be the time to consider how this evolving asset fits into your investment strategy. As always, careful research and a long-term perspective are key when navigating the unpredictable world of cryptocurrency.
Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9
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