Those who follow and perhaps even invested in Bitcoin can all attest to the fact that it has been a rollercoaster ride, particularly in the last 2 years. I am yet to find anyone, from hobbyists and shillers on Youtube to wallstreet data-rich firms that have accurately predicted it's movements in that time.
Anyway, I will say also that of late, we have observed some hopeful upward trends. For instance the following graph of Bitcoin performance to date by CoinGecko depicts price consolidation
In addition to this recent past trend, there are a number of reasons why Bitcoin's price MAY boom in October 2023:
- Bitcoin spot ETFs: The dependance and in turn a positive result, i.e approval would be marvellous to Bitcoin and Cryptocurrencies in general. The US Securities and Exchange Commission (SEC) has delayed its decision on whether or not to approve Bitcoin spot ETFs until further notice. If the SEC approves Bitcoin spot ETFs, it would be a major bullish event for Bitcoin. Spot ETFs would allow investors to invest in Bitcoin without having to buy and store the cryptocurrency directly. This would make Bitcoin more accessible to a wider range of investors and could lead to a significant increase in demand.
After all this cautionary hope, time for significant caveats:
The SEC has delayed its decision on Bitcoin spot ETFs several times in the past, therefore it is possible that the deadlines could be pushed back yet again. Moreover the SEC is not obligated to approve any Bitcoin spot ETF applications. In fact the SEC has cited concerns about market manipulation and investor protection as reasons for its previous delays. All in all, one thing for sure is the SEC will revert back with a decision, especially because heavy weight Bitcoin institutions like Cathy Woods's ARKInvest and Larry Fink's BlackRock await verdicts on their respective applications. The final deadline to respond to ARK Invest and 21Shares's spot bitcoin ETF application is by January 10, 2024, whereas to BlackRock's application cutoff date is March 15 next 2024.
- Institutional adoption is another argument in favour of a bullish Bitcoin run. Institutional investors are increasingly adopting Bitcoin. This is due to a number of factors, including Bitcoin's growing market capitalization, its limited supply, and its potential to serve as a hedge against inflation. Institutional adoption is one of the most important factors driving Bitcoin's price in the long term. I think, governments as El Salvador having adopted Bitcoin as legal tender., pioneered will also follow suit after they witness heavy batters take a swing at Bitcoin investments.
Some of the concrete examples of institutional "putting their money, where their mouths are" moves are by colossal financial institutions, such as BlackRock, Goldman Sachs, and Morgan Stanley, which are now investing in cryptocurrencies or offering crypto-related products and services to their clients.In addition,a number of corporations with undeniably vocal and visible faces of billionairres, such as MicroStrategy with Michael Saylor, Tesla with Elon Musk, and Square with Jack Dorsey, have invested in Bitcoin or added Bitcoin to their balance sheets. Adding to this number of formidable institutions are asset managers, such as Grayscale Investments and Valkyrie Investments, who offer crypto-related investment products to their clients.
- Payment processors are a natural ramp up engine in this trend. Evidence to this is a number of payment processors, such as PayPal and Visa, now allow their users to buy, sell, and hold cryptocurrencies.Similarly, Custody providers such as Coinbase Custody and BitGo, have also aligned to this demand and supply stream by offering their storage solutions for institutional investors who hold cryptocurrencies.
Of course, there is always the possibility that Bitcoin's price will not boom in 2023. Saying, declaring that the cryptocurrency market is volatile and unpredictable is not news! Therefore please very carefully note that this is not financial advice. Do dilligently conduct your own research before investing in any cryptocurrency.
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