Bitcoin above $30,000 is just a stepping stone toward all-time highs and multi-bagger returns
Nov 2, 2023, 6:25 am EST
The crypto critics had their day, but now they’re being sent away. Bitcoin (BTC-USD) is truly on the move in 2023’s last quarter, but is it destined to revisit its all-time high? I’m saying definitely yes, and multiple factors are already putting a strong wind in Bitcoin’s sails.
It’s amazing to hear someone with the stature of BlackRock (NYSE:BLK) CEO Larry Fink saying that the recent Bitcoin rally represents a “flight to quality.” Yet, it’s happening as both retail and institutional investors consider Bitcoin an investable asset. BlackRock’s management isn’t just praising Bitcoin. The company is getting involved in cryptocurrency in a big way, with significant implications for investors worldwide.
It seems like forever ago that Bitcoin traded near $69,000. Throughout 2022 and most of 2023, BTC-USD was stuck in a rut, refusing to rally and frustrating hopeful crypto millionaires.
Then, in October, Bitcoin suddenly swung higher and briefly touched $35,000. It just goes to show that the HODL (Hold On for Dear Life) strategy can really pay off sometimes.
It’s an amazing time to invest in cryptocurrency. Bitcoin’s hashrate recently hit all-time highs. The U.S. government, believe it or not, owns $5.5 billion worth of Bitcoin. The times have changed dramatically, wouldn’t you agree?
Matt Weller, global head of research at Forex.com, suggested that there may be a “potential supply shock” coming for Bitcoin. Remember, there’s a supply limit of 21 million Bitcoins, and most of them have already been mined.
Plus, there are reportedly only around 2.3 million Bitcoins available for trading on cryptocurrency exchanges. Hence, as Weller put it, just a “small bump in demand” could shift the supply-demand dynamic and send the Bitcoin price much higher.
Weller also observed “speculation around the ETF,” referring to the market’s hopes of an upcoming spot Bitcoin exchange traded fund. If such a fund comes onto the market soon, interest in Bitcoin would certainly increase and that would prompt a rally in the token’s price.
For folks who HODL Bitcoin, it almost doesn’t matter which firm gets a fund approved first. What matters is that the financial press will spend a lot of time talking about Bitcoin. Moreover, the token would gain interest and demand among retail traders and institutional investors.
Because of the possibility of an approved spot Bitcoin ETF, the token’s price could easily spike in the coming weeks. However, long-term investors should also consider Bitcoin’s limited supply, which will be a bullish catalyst.
Overall, Bitcoin will always involve risk but it’s destined to break through its prior peak of around $69,000. So, feel free to HODL some Bitcoin and prepare for a crypto bull market like you’ve never seen before.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.