Bitcoin started veiled in the controversy of people using the first cryptocurrency as a method of payment on the Dark Web, and many tried to capitalize on scam coins following the expansion of the digital currency market. Bitcoin was also the subject of criticism and fear that this type of currency may cause national currencies to collapse; however, some top investors claimed that bitcoin was only worth as much as the next trader or investor was willing to pay for it.

More than ten years later, bitcoin has become far more commercialized and is now understood as a way to transfer value quickly and at a low cost. Advocates and evangelists of the crypto space are pushing the top crypto into the mainstream, and Wall Street and governments from around the globe are starting to see BTC more casually.

After dropping by 50% in November 2019, BTC fell below $4,000, only to rebound to $10,000 in the second quarter of 2020. After plummeting once again, analysts are now expecting perhaps the biggest rally in the history of bitcoin.

Bitcoin: More Accessible to Average Buyers

Several years ago, in 2017, it took up to a week to open and verify an account on a crypto exchange, which resulted in few traders and investors entering the crypto market. Additionally, traders responsible for 22 trillion dollars-worth registered investment funds in the US had no way to purchase bitcoin on behalf of their clients. Three years later, KYC and AML verifications now only take several minutes, and the industry has many trusted exchanges and far fewer scam and unreliable markets, allowing investors and traders to easily pour more money into bitcoin.

Governments are starting to talk about BTC more openly and casually. It appears that bitcoin is finally gaining the recognition it deserves. The number of regulated exchanges is on the rise, and traders and investors can take advantage of mobile platforms, trust funds, and decentralized exchanges to buy bitcoin at any time. The cryptocurrency market is already more available to traders and investors, experienced or not. Entry levels for BTC and other cryptos are lower than the average stock. Additionally, crypto markets are always open. Bitcoin is also gaining exposure through derivatives, financial instruments, and the trading desks of large investment funds. Bitcoin is becoming more available to holders and traders alike, and its value is becoming more evident every year.

Mainstream Use, Safe Haven, and the Halving Frenzy

There are thousands of bitcoin ATMs around the globe, making the first cryptocurrency more available for mainstream use than ever while also raising awareness of the value of BTC as an asset and a digital currency.

Bitcoin is popularly called ‘digital gold’. BTC is considered a safe haven for storing value, especially in times of economic crisis and recession. Countries that are going through severe economic conditions, such as recessions and the devaluation of the national currency, are already turning to bitcoin as a way to down devaluation and fight recessions. Even though bitcoin is susceptible to price fluctuations that are classified as ‘radical’ at times, bitcoin’s decentralization, the process of halving, and the limited total supply make it a perfect tool for fighting inflation and safely storing monetary value.

The last time BTC halved before May 2020 was in July 2016.

According to historical metrics, bitcoin has gone through significant bull runs after each halving, which takes place every four years. It usually takes months for BTC to surge and reach new highs after the halving process. The last time BTC halved before May 2020 was in July 2016. Back then, BTC traded at a price of $650. The next year, in December 2017, bitcoin reached an all-time high of $20,000 per unit. Bitcoin dropped to a value of $3,200 by December 2018, but its price was still 400% higher than the pre-halving value.

As bitcoin becomes more mainstream and people start to realize that BTC, indeed, carries intrinsic value, BTC is getting more chances to go through another major bull run.

When Will the Bull Run Happen for Bitcoin?

Bloomberg’s report states that BTC is preparing for its next bull run, which could be the biggest by far. The current metrics are similar to the price trajectory noted before BTC’s all-time high in 2017.

With the COVID-19 outbreak meddling with the global economy and bringing turmoil across numerous sectors and industries, Bloomberg classifies gold and bitcoin as primary beneficiaries. Furthermore, the Bitcoin Maturation Leap report adds that the inception of BTC futures has managed to tame the bull market, decreasing the volatility of BTC as a consequence. The authors of the report claim that the volatility should keep decreasing.

This moment is crucial for the next bull run. Record-low volatility was recorded back in October 2015, when the beginning of the biggest bull run by far was marked. With the next bull run, more people should be ready to invest in BTC.

Rate this article:
Author: Tokens.net Team
English
Deutsch
Italiano
Français
Español
Nederlands
Polski
Svenska
Português
Türkçe