Bitcoin, the world’s leading cryptocurrency, has seen a dramatic increase in value, surging by almost 150% this year, hitting a high of nearly $45,000 in December from $16,600 at the start of the year. Despite facing challenges such as interest rate hikes and legal actions against prominent figures like Changpeng Zhao and Sam Bankman-Fried in 2022, cryptocurrencies have proven their resilience.

Blockchain Technology and Decentralization

The underlying technology of blockchain and decentralization make cryptocurrencies difficult to eradicate or shut down. Many see the potential of cryptocurrencies as an investment in a future where their technology becomes mainstream and offers new applications, such as apps for social networking or money-making games.

Cryptocurrencies as Potential Diversifiers

Cryptocurrencies are also cited as potential diversifiers in investment portfolios due to their low correlation with general markets. A recent court ruling in the United States favoring the creation of exchange-traded funds (ETFs) based on bitcoin could lead to more institutional investment and provide an easier way for the average investor to invest in cryptocurrencies.

Bitcoin’s Soaring Value

The price of Bitcoin (BTC) is currently trading at $43,656.71, a 100% increase compared to its value 24 hours ago, and a 102% increase compared to the same day last week. The current market capitalization of the token is $854,834,101,317. Bitcoin is increasingly accepted around the world and can be used to buy products and services. Each bitcoin is stored in a ‘digital wallet’, and bitcoin transactions are recorded in a public list known as the blockchain.

The Future of Bitcoin

The landscape for Bitcoin in 2024 seems to be at a critical turning point, with fundamental factors that could drive its price upwards. The potential approval of Bitcoin ETFs in the United States, the expected halving in April or May of 2024, and the influence of macroeconomic factors such as inflation in the United States, could contribute to a substantial and sustained increase in the price of Bitcoin. However, the importance of taking adequate risk management measures is highlighted, as no price rise will be eternal.

As we move forward, the number of Bitcoin addresses with a minimum of $1 million has increased significantly, reaching 97,326. Despite a slight decrease in its daily trading value, the price of Bitcoin is around $43,203, showing solid annual growth. The increasing number of wealthy Bitcoin holders can be attributed to several optimistic market signals, including the Bitcoin Rainbow chart suggesting a positive trajectory for the cryptocurrency, the potential approval of a Bitcoin ETF opening the doors to the entry of more institutional money into the market, and anticipation of the upcoming Bitcoin Halving, which has historically preceded substantial price increases.