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Congratulations, you’ve officially survived the Bitcoin bear market.
After crashing to a multi-year low of $16,500 per token amid the FTX scandal and subsequent bankruptcy, the world’s largest cryptocurrency is now up 80% on the year. Today, Bitcoin is trading above $30,000 for the first time since June 2022.
The price of Bitcoin has continued to trend up since January, which means we’ve officially seen two consecutive quarters of growth—enough to fit the standard definition of a bull market.
This, despite the fact that the cost of borrowing fiat currency is at generational highs. With interest rates above 5 percent for the first time since 2006, cryptocurrency markets have never seen a U.S. economy so tight on cash.
If this is how markets are responding to a tight money economy with less money in circulation, imagine what could be the case when interest rates eventually drop in 2024.
Market Snapshot: July 7, 2023
- Inflation Rate: 4.0%
- Fed Rate: 5.00% to 5.25%
- Gold Price: US$1,916/oz.
- Silver Price: $22.74/oz.
- Bitcoin Price: US$30,122
- Ethereum Price: US$1,860
- Ethereum Price: US$1,865
Speaking of 2024, there’s an important date that every cryptocurrency investor should have marked on next year’s calendar: the next Bitcoin halving date.
On April 26, 2024, at 11:59 a.m. UTC, the Bitcoin blockchain will halve for the fourth time in its history. This blockchain “update” will bring the block reward to about 3.125 BTC, and will permanently reduce the rate at which new Bitcoin tokens are mined into existence.
Historically, Bitcoin halving is an extremely bullish event for Bitcoin and the cryptocurrency market as a whole. To date, every halving event has been followed by a significant bull run:
- 2012 Halving: +1,025% growth after 150 days
- 2016 Halving: +16.75% growth after 150 days
- 2020 Halving: +24.1% growth after 150 days
Perhaps there’s a reason why whales are buying up BTC at discount rates. For instance, MicroStrategy just acquired 347 million in BTC, increasing their total holdings in Bitcoin to a whopping $4.52 billion. Other institutional buyers fattened their wallets with BTC to the tune of $1.6 billion in May and June.
Maybe the whales are aware of something we’re not. Or, maybe they know exactly what you do—that, between 2024’s upcoming halving event and easy money monetary policies, there’s a good chance Bitcoin’s bull run will be taken to never-before-seen heights.
Want in on the action? Consider adding to your position in Bitcoin, Ethereum, or other altcoins today with one of America’s top-ranked crypto IRA companies. Forward price momentum could carry the crypto market into all-time high territory before you know it, so it’s best to secure a discounted price now while retail investors are still sitting on the sidelines.
Liam Hunt, M.A., is a financial writer covering global markets, monetary policy, retirement savings, and millennial investing. His commentary and analysis have been featured in the New York Post, Reader's Digest, Fox Business, and Forbes.
