Bitcoin appears to have finally conquered arguably its biggest test up until now. The floodgates for Bitcoin are about to open and there will be only one thing left to do; for prices to go up.
Wednesday, September 18 2024 was the day that the mood in the cryptocurrency market completely flipped. It was all due to the announcement that sent shock waves around the world. Jerome Powell announced that the FED would officially be lowering interest rates in the US by 50 points. (0.50%) Cutting the interest rate from 5.5% down to 5%.
This is the most important thing that has happened to Bitcoin since the BTC spot ETFs were approved in January.
Up until the Covid pandemic occurred, Bitcoin had only lived in a world where the US was in an up-only state of mind. The engine was running smoothly and interest rates were at all-time lows.
Essentially since Bitcoin’s creation and growth in popularity, it had only existed during fiat bull markets. One of the biggest questions was always, “How would Bitcoin handle a recession?”
How would it handle a time when interest rates began soaring, the US and the world entered a recession, lived through a pandemic, inflation was rampant, people had no expendable income, and jobs were being cut left and right.
If Bitcoiners were told all of those things were going to occur and the price of Bitcoin would still be hovering around $60k, they would be thrilled.
It has survived its greatest challenge up until now.
Many people become frustrated at times with the constant FUD that is thrown towards Bitcoin, or how the price moves sideways for lengthy amounts of time. Even worse are the bear markets where the price action can become flat-out depressing.
However, the truth is that all of those challenges are necessary for Bitcoin to gain trust and/or value in the market. You would never want to invest in an asset that was considered arguably the greatest way to store your wealth that had never been tested before. That is one of the greatest reasons that Gold has become so trusted. It has stood the test of time for generations and maintained its value. Through the good days and the bad.
While admittedly Bitcoin is still an infant and hasn’t been tested anywhere near as much as gold. Each battle it faces and survives, each day that blocks continue to be mined, means that it is continuing to grow stronger.
The Big Picture
The FED has lowered interest rates and this means that money will become cheaper. While it won’t happen today, tomorrow, or next week, the end result is that people and companies will have much more expendable cash as a result of this. Money that will be invested into Bitcoin.
Everything seems to be lining up perfectly for Bitcoin.
With the FED lowering interest rates, money is becoming cheaper. The spot ETFs are as strong as ever, being led by BlackRock. Bitcoin has recently had the BTC halving occur, which split the issuance rate of newly created Bitcoin per block in half. Also, Bitcoin has become a key topic in this year’s US Presidential election. Bitcoin has officially made it to the big stage.
All the while Bitcoin’s price has surged to $62k and we are on the verge of the next parabolic bull market.
Just one of those scenarios alone would traditionally be enough of a catalyst to ignite the next Bitcoin bull market. But, this time is different. There are a handful of incredibly bullish scenarios playing out for Bitcoin at the same time.
What this all means is that the floodgates are about to be flung open for Bitcoin, and we will all wish that we had bought more.
How about you? Do you think the floodgates are about to open for Bitcoin’s price?
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