Bitcoin surpasses 40,000 dollars: the factors and the forecasts

Bitcoin, the most famous and popular cryptocurrency in the world, has achieved a new historical feat: it has surpassed the threshold of 40,000 dollars for the first time in its history, reaching a maximum of 40,402 dollars on December 4, 2023. This means that the value of Bitcoin has increased by over +144.08% compared to the beginning of the year, when it was around 16,000 dollars.

What are the factors that have pushed Bitcoin to this incredible result? And what are the forecasts for the future of this cryptocurrency? Let’s see together.

The factors that have supported the rally of Bitcoin

Among the main factors that have contributed to the exponential growth of Bitcoin in 2023, we can mention:

• The greater adoption by institutional investors, who have seen in Bitcoin a safe and profitable alternative to traditional financial assets. Among these, the names of MicroStrategy, Square and PayPal stand out, who have invested billions of dollars in Bitcoin and have offered their customers the possibility to buy, sell and store the cryptocurrency on their platforms.
• The increasing demand from private investors, attracted by the potential of Bitcoin as a store of value and as a global and decentralized means of payment. The number of active Bitcoin wallets has reached a record of over 36 million in November 2023, while the volume of daily transactions has exceeded 10 billion dollars.
• The programmed scarcity of Bitcoin, which limits its supply to 21 million units. This feature makes Bitcoin immune to inflation and devaluation, unlike fiat currencies that can be printed at will by monetary authorities. On May 11, 2020, the third halving of Bitcoin occurred, an event that reduces the reward for miners who validate transactions and create new Bitcoins. This led to a reduction in the supply of Bitcoin on the market and an increase in its rarity and value.
• The resilience of Bitcoin in the face of legal and regulatory challenges, which have put some of the main cryptocurrency exchange platforms, such as Binance, in difficulty. Despite the fines and pressures from the authorities of different countries, Binance has managed to maintain its position as a leader in the sector, offering its users a wide range of services and products related to Bitcoin and other cryptocurrencies.

The forecasts for the future of Bitcoin

After reaching the milestone of 40,000 dollars, what are the expectations for the future of Bitcoin? According to many analysts, the bullish trend of Bitcoin will not stop here, but will continue to rise to new records. Some of the reasons that could support this prediction are:

• The continuous technological innovation in the cryptocurrency sector, which leads to greater efficiency, security and scalability of Bitcoin and its secondary solutions, such as the Lightning Network, which allows to make instant and low-cost transactions.
• The possible approval of ETFs (Exchange Traded Funds) on Bitcoin, which would allow investors to access the cryptocurrency through regulated and listed financial instruments. This could lead to greater liquidity, transparency and legitimacy of Bitcoin, attracting new capital and new market participants.
• The growing awareness and diffusion of Bitcoin among the general public, who appreciate its characteristics of decentralization, freedom and inclusion. Bitcoin is now recognized as a global phenomenon, involving millions of people around the world, both as users and as supporters. Bitcoin is also a vehicle of information and financial education, which stimulates people to inform themselves and take control of their money.

In conclusion, Bitcoin has proven to be a solid, innovative and unstoppable cryptocurrency, which has been able to overcome the challenges and criticisms and reach new levels of success and popularity. The forecasts for its future are positive and optimistic, with some analysts who hypothesize that Bitcoin could reach 100,000 dollars by 2025. However, as always, it is necessary to be prudent and aware of the risks and opportunities that the cryptocurrency market entails, and invest only what you can afford to lose.

Resources↓
1 - https://www.darkcrypto.it/bitcoin-supera-i-40mila-dollari-e-trascina-il-settore-crypto/
2 - https://coinmarketcap.com/it/currencies/bitcoin/
3 - https://picjumbo.com/