The Future of Bitcoin: Will Crypto Currencies Change the Rules of the Game in American Politics?
Today's market analysis on behalf of Rania Gule Market Analyst at XS.com
May 28, 2024 (Investorideas.com Newswire) Bitcoin prices dropped by 2% on Tuesday to trade around $6,717, after wallets linked to the collapsed cryptocurrency exchange Mt. Gox moved 107,547 bitcoins worth around $7.3 billion to an unknown wallet.
From my perspective, this move comes ahead of the cryptocurrency exchange's plan to redistribute bitcoin assets to creditors before next October. The U.S. Securities and Exchange Commission (SEC) recently approved several Ethereum exchange-traded funds, representing a significant advancement for the second-largest cryptocurrency by market value. This decision involves financial giants like BlackRock, Fidelity, and Grayscale and could redefine institutional investors' access to crypto assets. I believe the approval of these exchange-traded funds is a significant leap for the cryptocurrency market.
It's worth noting that Donald Trump announced his presidential campaign would now accept donations in Bitcoin (BTC), Ripple (XRP), and Shiba Inu (SHIB). This initiative allows supporters to contribute via the Coinbase platform with donation amounts ranging from $20.42 to $4,547. I think this decision sharply contradicts the current Biden administration's stance and could impact the future regulation of cryptocurrencies in the United States.
Recently, a significant withdrawal of 1,195 bitcoins, valued at around $81.95 million, was made from Binance, the world's largest cryptocurrency exchange, to an unknown address, drawing attention from the cryptocurrency community. Large withdrawals from exchanges are usually seen as bullish signals for medium-term price increases.
To elaborate further, institutional investors buy crypto assets on highly liquid platforms like Binance and then transfer them to private storage wallets, indicating long-term holding strategies and a bright future for cryptocurrencies.
There is no particular mystery in this transfer, as only one platform is withdrawing bitcoins from the largest global exchange with high liquidity to meet its own needs. Consequently, the price of Bitcoin continues to trade near $70,000 per coin. The price of the leading cryptocurrency has risen by more than 2% to reach an all-time high of $74,000, remaining less than 5.5% below its usual post-halving increase historically.
So, I believe the current correction in Bitcoin's price may be deep, reaching levels of $59,000 and $55,000 in the long and medium term, possibly over several months, but it will bounce back upwards, perhaps in the second quarter of 2025. From there, Bitcoin is poised to achieve new highs, potentially reaching the expected level of $100,000 or even higher. Therefore, wisdom in purchasing and patience to reap long-term profits are currently the strongest strategies in the cryptocurrency market.
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