Why is the crypto market crashing?
Crypto markets fall sharply amid escalating Israeli-Iranian tensions, with Bitcoin and Ether experiencing significant drops. Following reports of Israeli missile strikes on Iranian targets and retaliatory drone attacks by Iran on Israel, major cryptocurrencies, including Bitcoin and Ether, have seen sharp declines.
The reasons behind this fall could be attributed to geopolitical tensions, as well as the upcoming BTC halving, historically known for inducing high volatility. Negative ETF data also contributed to market sentiment," said CoinDCX Research Team.
A bad week for crypto
Hotter-than-expected inflation reported earlier this week caused an increase in interest rates and a drop in tech and growth stocks, which have all traditionally correlated with falling crypto values. It just took a while for the market to process the news.
A recent report predicts that Bitcoin will reach a new all-time high in 2024. Bitcoin (BTC) is expected to reach a new record of $88,000 (€82,000) throughout the year, before it settles around $77,000 at the end of 2024, according to a new report. The cryptocurrency's current price sits at around $43,000.
The 2024 Bitcoin halving, anticipated to drive prices up significantly, highlights the importance of Bitcoin in the crypto world. This event may lead to increased adoption, new regulations, and global financial system impacts.
As of 2024, approximately 19.4 million bitcoins have been extracted, indicating that more than 92% of the entire available amount is currently in use. This leaves fewer than 2 million bitcoins yet to be mined.
Bitcoin – of which there are more than 19m in circulation – will continue to halve until the 21m point is reached, expected in 2140.
The institutions are knocking on Bitcoin's door. As previously mentioned, Wood has been quite vocal about her belief in Bitcoin. As early as 2022, she made headlines for claiming that Bitcoin had what it takes to reach more than $1 million by 2030.
The Bottom Line
Cryptocurrency investing carries a substantial risk and should be approached with caution. This still-nascent market is prone to high volatility and uncertainty. However, crypto assets also present unique potential for those willing to accept the elevated risks.
Bitcoin's price remains highly volatile
But when times are bad, bitcoin's price often takes a much harder fall compared to stocks. Take 2022, which was generally an awful year for stocks, with the S&P 500 plunging around 19%. In the same year, bitcoin lost over 60% of its value.
What will $1000 of bitcoin be worth in 2030?
If Wood is correct and Bitcoin reaches $3.8 million, if you invested $1,000 in Bitcoin now, it would be worth $54,280 in 2030. This would result in a compounded annual growth rate (CAGR) of nearly 95%.
While the crypto market is still relatively new and volatile, there are several promising projects with the potential to grow significantly over the next decade. The breakout of Bitcoin (BTC-USD) and the anticipation of a spot Bitcoin ETF suggest the possibility of a new crypto bull market.
By 2030, we predict that Bitcoin could reach a high of $160,000. Other crypto analysts suggest even higher price targets ranging from $427,000 to $1.5 million per Bitcoin.
By 2040, the maximum price of the BTC Coin is projected to be around $5,69,240.60. Our average price forecast for Bitcoin is $5,57,632.74 in 2040. Conversely, if the market turns bearish, the minimum price level of BTC Coin could fall down to $5,42,838.40 by 2040.
As of March 2023, the top 1% of Bitcoin addresses hold over 90% of the total Bitcoin supply, according to Bitinfocharts.
Today, roughly 1 million wallet addresses have more than 1 bitcoin. Think about that for a moment — only 1 million out of the nearly 8 billion people on Earth own at least one full bitcoin. That works out to be only about 1 in every 8,000 people!
Satoshi Nakamoto, the pseudonymous creator of Bitcoin, is believed to own the most bitcoins, with estimates suggesting over 1 million BTC mined in the early days of the network.
Bitcoin prices usually rise for several months following a halving event. However, this time, the market expects the halving to be different. The fourth Bitcoin halving event is almost upon us with, if history is any indicator, the cryptocurrency likely to see a post-halving surge.
How many Bitcoins are mined per day? Data suggests that approximately 900 new Bitcoins are mined daily. This figure is based on a block reward of 6.25 BTCs and an average block time of 10 minutes.
Consider this: if it were universally anticipated that bitcoin's value would surge immediately following the 2024 halving, investors would likely move to acquire bitcoin before the event, driving up its price in the present rather than in the future.
Should I buy ethereum or Bitcoin?
BTC is more established, but ETH has growth potential. For short-term, BTC is safer; long-term, ETH may yield higher returns.
Fidelity Predicts: $1B per 1 BTC by 2038 — 2040
Jurrien Timmer, the Director of Global Macro at Fidelity Investments, thinks the value of a single Bitcoin could reach $1 billion by the year 2038 — very close to our Bitcoin price prediction 2040 target date. Timmer's demand model is rooted in Metcalfe's Law.
The process of mining Bitcoin rewards miners with new bitcoins for each block of transactions they successfully add to the blockchain. However, once the maximum supply of 21 million bitcoins is reached, these block rewards will cease.
Don't invest more than you can afford to lose
If you can't afford to lose it – all of it – you can't afford to put it into risky assets such as cryptocurrency, or other speculative assets, for that matter.
The crypto market has maintained its bullish momentum in 2024 after Ethereum rallied 85% and bitcoin gained nearly 150% in 2023. Heading into April, bitcoin prices are up another 64.9% year-to-date, while Ethereum prices are up 55.6%.
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