Bitcoin Receives Predictions of a NEW Peak in 2024, Amidst predictions for 2024 ranging from the return of former President Donald Trump to the presidency of the United States to a possible recession in the country, the asset manager VanEck sees a promising horizon for Bitcoin. According to analysts, the cryptocurrency may surpass its historical record, reached in 2021, and hit a new peak on November 9, 2024.
The positive outlook for Bitcoin is aligned with the forecast for the approval of the Bitcoin Exchange Traded Fund (ETF) in the United States, expected to happen as early as January of next year. According to VanEck’s research team, the new investment modality should attract a substantial capital influx, estimated at around $1 billion in the days following the launch of the first ETFs and around $1.5 billion by the end of the first quarter of 2024.
What is halving, and how can it impact the price of Bitcoin?
Analysts also point to the halving, an event scheduled for April, as one of the factors that should influence the price of the cryptocurrency. This action will reduce the number of new bitcoins created daily from approximately 900 to about 400. Thus, a new supply and demand dynamic is created that can drive the value of Bitcoin.
Another highlight noted by VanEck is the partnership between BlackRock, the world’s largest asset manager, and Coinbase, the largest cryptocurrency trading platform in the United States. This collaboration is seen as a sign of maturity in the digital asset sector, which can attract other institutional investors and generate greater ease and security of access to the class.
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What is the perspective of major market players?
According to Cathie Wood, CEO of Ark Invest: a manager focused on technology sector investments, the approval of the Bitcoin ETF in the United States will be a significant regulatory advancement for the digital asset class. Besides attracting more investors, the measure is expected to change how the traditional financial world views digital assets.
On the other hand, MicroStrategy: a technology company known for having one of the largest positions in bitcoins worldwide, sees the launch of the ETF and the halving event as factors that could boost the adoption and notoriety of the cryptocurrency among the general investing public. MicroStrategy CEO Michael Saylor believes that the confluence of these factors could raise the price of Bitcoin to up to $350,000 before the end of 2024.
It is worth noting that the opinions and predictions presented in this text reflect the views of the analysts and CEOs of the companies mentioned and are based on publicly available data at the time of publication, as duly indicated sources. This is educational and informational content about the market and financial products but does not constitute any type of analysis report, recommendation, offer, or solicitation to buy and/or sell any product.
Benefits of financial education along with cryptocurrencies?
Financial education, when combined with an understanding of cryptocurrencies, can offer several benefits to individuals. Here are some key advantages:
- Risk Management:
- Traditional Finances: Financial education teaches individuals about risk management in traditional financial instruments like stocks, bonds, and mutual funds.
- Cryptocurrencies: Understanding the risks associated with the volatile nature of cryptocurrencies is crucial. Knowledge about market fluctuations and risk mitigation strategies can help navigate the crypto space more effectively.
- Diversification:
- Traditional Finances: Financial education emphasizes the importance of diversification to reduce risk.
- Cryptocurrencies: Individuals with financial literacy are better equipped to consider including cryptocurrencies as part of a diversified investment portfolio.
- Investment Decisions:
- Traditional Finances: Financial education helps individuals make informed decisions about investments in traditional assets.
- Cryptocurrencies: Understanding the fundamentals of blockchain technology, the utility of specific cryptocurrencies, and market trends is essential for making educated investment decisions in the crypto space.
- Security Awareness:
- Traditional Finances: Financial education includes knowledge about securing personal financial information.
- Cryptocurrencies: With the decentralized and digital nature of cryptocurrencies, understanding how to secure private keys and use hardware wallets is crucial to protect crypto assets.
- Market Awareness:
- Traditional Finances: Financial education provides insights into economic indicators, market trends, and global events.
- Cryptocurrencies: Staying informed about regulatory developments, technological advancements, and market sentiments is vital for anyone involved in the crypto space.
- Technological Understanding:
- Traditional Finances: Financial education may include basic technological literacy.
- Cryptocurrencies: A deeper understanding of blockchain technology and how cryptocurrencies work enhances one’s ability to engage with these assets.
- Long-Term Planning:
- Traditional Finances: Financial education often emphasizes the importance of long-term planning and retirement savings.
- Cryptocurrencies: Including cryptocurrencies in long-term investment plans requires understanding their potential role and risks in a portfolio.
- Adaptability:
- Traditional Finances: Financially educated individuals are generally more adaptable to changes in economic conditions.
- Cryptocurrencies: Being open to new financial instruments and understanding the evolving nature of the crypto space allows for better adaptability.
- Financial Independence:
- Traditional Finances: Financial education promotes financial independence through informed decision-making.
- Cryptocurrencies: Engaging with cryptocurrencies can be a step toward financial independence, given their potential for financial inclusivity and decentralization.
- Economic Empowerment:
- Traditional Finances: Financial education contributes to economic empowerment.
- Cryptocurrencies: Understanding and participating in the crypto economy can empower individuals by providing access to new financial systems and opportunities.
In summary, combining financial education with an understanding of cryptocurrencies provides individuals with a comprehensive toolkit for navigating both traditional and emerging financial landscapes. It enables informed decision-making, risk management, and the ability to adapt to the evolving nature of the financial world.
Benefits of Cryptocurrency Financial Education
| Benefit | Description |
|---|---|
| Risk Management | Traditional Finance: Teaches risk management in conventional financial instruments such as stocks and bonds. |
| Cryptocurrencies: Enables understanding of risks associated with cryptocurrency volatility and risk mitigation strategies. | |
| Investment Diversification | Traditional Finance: Emphasizes the importance of diversification to reduce risks. |
| Cryptocurrencies: Empowers considering cryptocurrencies as part of a diversified investment portfolio. | |
| Investment Decision-Making | Traditional Finance: Provides knowledge for informed decisions in conventional assets. |
| Cryptocurrencies: Understands blockchain technology, utility of specific cryptocurrencies, and market trends for well-informed decisions. | |
| Security Awareness | Traditional Finance: Education on the security of personal financial information. |
| Cryptocurrencies: Awareness of the security of private keys and the use of hardware wallets to protect cryptocurrency assets. | |
| Market Awareness | Traditional Finance: Teaches about economic indicators, market trends, and global events. |
| Cryptocurrencies: Staying informed about regulatory developments, technological advances, and market sentiments in the cryptocurrency space. | |
| Technological Understanding | Traditional Finance: Includes basic technological literacy. |
| Cryptocurrencies: Deepens understanding of blockchain technology and how cryptocurrencies function. | |
| Long-Term Planning | Traditional Finance: Emphasizes the importance of long-term planning and retirement savings. |
| Cryptocurrencies: Incorporates cryptocurrencies into long-term investment plans, considering their role and potential risks. | |
| Adaptability to Changes | Traditional Finance: Financially educated individuals are more adaptable to changes in economic conditions. |
| Cryptocurrencies: Being open to new financial instruments, understanding the dynamic nature of cryptocurrencies and their evolving environment. | |
| Financial Independence | Traditional Finance: Promotes financial independence through informed decisions. |
| Cryptocurrencies: Explores financial independence through participation in the crypto economy, with its potential for financial inclusion and decentralization. | |
| Economic Empowerment | Traditional Finance: Contributes to individual economic empowerment. |
| Cryptocurrencies: Participation in the crypto economy for access to new financial systems and opportunities. |
This table highlights how financial education in cryptocurrencies provides benefits that complement and expand upon the advantages of traditional financial education, empowering individuals to navigate challenges and seize opportunities in both conventional and emerging financial environments.
