Bitcoin fell to less than $ 80,000 for a short period: Is the difficult season end?

the Bitcoin ((BTC 0.55 %)) The chart was recently the rolling ship.

The original and largest encrypted currency increased to the highest level ever at $ 106,182 per currency in January, then fell by up to 25.8 % over the next seven weeks. This is a sharp refuge of a long height – Bitcoin has more than one quadruple in the past two years. To put gains in the context, S & P 500 ((^Gspc -1.39 %)) The market index showed a Total return From 49 % during the same period:

Bitcoin price Data by Ycharts

So, Bitcoin picked up a long winning chain, with less than $ 80,000 for the coin first for the first time since last November. Can the encrypted currency return to strong gains, or is everything in his power to work?

The Habbiya issue

First of all, some investors see very few in Bitcoin in the first place. Warren Buffett will not buy all bitcoin in the world for $ 25Because “he will not do anything.” It is not a commercial process, a large group of real estate, or a group of food -producing agricultural lands. The value of this digital asset does not depend on anything real, so the only way to earn money with it is to find a buyer ready to pay a higher price.

From this perspective, Bitcoin was late to correct prices. The current market value of $ 1.62 trillion is more than $ 25, after all.

Even if you see a great value in Bitcoin’s origins, you can still say it is exaggerated. 2024 was crowded with changing price stimuli for Bitcoin. With the introduction of the boxes circulating on the Stock Exchange (ETFS) based on the instant bitcoin prices, the fourth neck of bitcoin mining bonuses, and the introduction of a more suitable American government, maybe there is no room for more gains in 2025.

Moreover, many encryption investors feel nervous towards modern Progress in quantum computing. Perhaps computing technology of the next generation is likely to make the currently broken cipher algorithm and has a long-term value-including the famous SHA-256 segmentation system in the heart of the Bitcoin encryption safety. alphabet ((Goog -2.53 %)) ((Googl -2.60 %)) and Microsoft ((Msft 1.17 %)) Huge leaps have been taken forward in recent months, it can be said that they accelerate the progress of quantum computing for several years. Thinking is that criminals and scammers should be on the threshold of penetrating the book of the Digital Professor of Bitcoin to the pieces.

Where bulls hang Bitcoin their hats

The bitcoin white paper compares the cryptocurrency with material gold. Instead of buying shots, shovels, mines and crude refining devices, bitcoin miners invest in data and electric energy centers. Either way, two types of miners generate a rare resource and thus. It is also useful in the real world: gold is found in jewelry, medical devices and electronics, while Bitcoin offers the strong and fenant professor’s book. Warren Buffett has never a gold investor, so his hatred of Bitcoin is logical in this light.

ETF stimulus delivered some of its value before the actual event. Bitcoin prices increased by 72 % from early October, 2023 to January 12, 2024. In this time period, rumors gossip around the instant bitcoin boxes turned into strong expectations, and reached its peak in its approval and introduction. But this is not the end of the creation of value. The most popular name in the list, Ishaares Bitcoin Trust Etf ((Ibit -3.46 %)) He holds 47.4 billion dollars from Bitcoin in A. Coinbase Global ((currency 7.43 %)) Nursery service. This strong flow of money should be the beginning of a long -term direction. Deep institutional investors Cryptocurrency is not ready yet, but the traded investment boxes are easy to use in the Standard Stock Portfolio. So Bitcoin’s investment funds open the door to larger long -term investors.

As for the Trump management currency policies, it is only time that will determine how to change the Bitcoin market. Bitcoin strategic reserves Do not form to Bonanza to buy Bitcoin that some encryption holders expect, but more than a calm alternative to gold reserves. more Laissez-FAIRE The currency planning approach may already speed up the bitcoin accreditation on a large scale and other encrypted currencies, but the final regulations may still be many years away.

The threat of quantum computing may seem terrifying. In fact, Bitcoin is largely subject to active development and must be immune to these attacks long before the quantum computers are strong enough to form a real threat. There are problems in mathematics that are difficult to solve with a mature quantitative computer, and the encryption systems already adopt these strongest algorithms by boat load. Meanwhile, even the most optimistic expectations expect quantum computers to remain in the games and experiments for at least five years.

Long -term view

Finally, this half -cycle looks very familiar.

The graphs do not tell the entire story, of course. Previous results are not a guarantee of future gains. However, Halforms make a big difference in the economies of Bitcoin Mining, which effectively reducing financial rewards as it remains as it remains the same. In the long run, this production model only works if bitcoin prices rise over time. Along the way, both miners who are suffering from a shortage or inactive are not vibrating while major producers continue to gain a good living.

In that memo, the current half cycle is somewhat close to the previous examples. The second and third Halforms launched thousands of two percent price jumps – about a year and a half after every half mining bonuses. If the continuous half -calendar remains on the right track, I expect that peak prices in the fall of 2025, Followed by another winter encryption. Things can be different this time, but this is what the Bitcoin pricing date.

No, the Bitcoin Bull Run operating

Therefore, bitcoin bears have their arguments, but the bulls bring a stronger issue on the table. With or without half effects, Bitcoin has become the digital gold standard for value storage. Even if I never use Bitcoin to pay the price of a candy bar, a car or a house, this cryptocurrency and its digital note look ready to replace savings accounts over time. This is a millions of dollars market, mature to update a global scale.

For this reason, Bitcoin expected to continue building market value, and may be highlighted by the rise in temporary prices later this year. In my eyes, Bitcoin is one of the great origins you have in the long run. The last decrease in prices is just another short -live crush on the plans.