On November 10th 2024, Bitcoin broke headlines, crossing the $80,000 barrier and reaching a new all-time high! This is a historical moment for crypto and this year Bitcoin has climbed roughly 115%, nearly doubling in value in a year. As of today, the global crypto market cap stands at $2.2 trillion, up 50% since January.
Current Financial Trends
Trump’s Presidential Victory & Pro-Crypto Agenda
On November 5, 2024, Donald Trump secured a win in the presidential election, marking a historic moment for the crypto industry. He is set to become the first U.S. president committed to transforming America into a pro-crypto nation. Markets surged in response, fueled by the hope that his promises may soon become reality. His plans include establishing a strategic national Bitcoin reserve, making the U.S. a global leader in crypto mining, and appointing new, pro-crypto leadership at the SEC.
You can learn more about this here.
Interest Rates
On September 18, 2024, the Federal Reserve cut interest rates for the first time since the early days of COVID-19, reducing them by 50 basis points (5.25% to 4.75%).
Then another meeting occurred on November 7th, 2024, during which they cut interest rates for the second time, reducing them by 25 basic points (4.75-4.50%).
These moves mark a shift in the Fed's recent strategy of maintaining steady rates and responding to evolving economic conditions. Lower rates typically encourage more borrowing and investment appeal, potentially benefiting assets like crypto, stocks, and real estate - and further cuts may be on the horizon.
You can learn more about interest rates here.
Spot Bitcoin ETF
The Spot Bitcoin ETF has been around for 11 months, and in just under a year, the cumulative volume for all spot Bitcoin ETFs has grown to $24.2 billion, starting at $4.54 billion the day after it was approved. What does this mean for Bitcoins availability? With large institutions purchasing up Bitcoin to back their ETFs, supply is getting tighter.
The Bitcoin Halving
We’re now 7 months into the post-halving period. The fourth Bitcoin halving took place in April 2024, and we’ve seen some interesting price action since then. Historically, Bitcoin tends to reach new highs about a year after each halving. Here’s how it played out in the past:
- The First Halving - November 2012
- Price of Bitcoin During the Halving: ∼$12
- 12 Months After the Halving: ∼$1,100
- The Second Halving - July 2016
- Price of Bitcoin During the Halving: ∼$650
- 17 Months After the Halving: ∼$18,000
- The Third Halving - May 2020
- Price of Bitcoin During the Halving: ∼$8,500
- 18 Months After the Halving: ∼$69,000
- The Fourth Halving - April 2024
- Price of Bitcoin During the Halving: ∼$64,000
- Price of Bitcoin After the Halving: To be determined…
More Crypto-Backed ETFs on the Horizon
Just three months after the Spot Bitcoin ETF hit the market, the SEC gave the green light to the Spot Ethereum ETF. This continued expansion of crypto-backed ETFs could mean even more growth in the digital asset space as both individual investors and institutions ramp up their exposure.
What Could Happen Next For Bitcoin?
With Bitcoin breaking through its all-time highs, the future appears exciting. As a more pro-crypto policy agenda takes shape, the door could open for more institutional and retail investors to enter the market. Also, with Bitcoins limited supply and growing interest, this cryptocurrency is poised to remain a major force in the global financial landscape.
At iTrustCapital, you can buy and sell real Bitcoin 24/7 in a tax-advantaged Crypto IRA.* If you’re ready to get started, click here to open an account today!
*Some taxes may apply.
DISCLAIMER
This article is for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.
iTrustCapital is a cryptocurrency IRA software platform. It is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not affiliated with and does not endorse any particular cryptocurrency, precious metal, or investment strategy.
Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.
Some taxes and conditions may apply depending on the type of IRA account. Investors assume the risk of all purchase and sale decisions. iTrustCapital makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrustCapital does not provide legal, investment or tax advice. Consult a qualified legal, investment, or tax professional.
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