Bitcoin, created by an unknown person or group of people using the pseudonym Satoshi Nakamoto in 2009, was the first cryptocurrency and remains the most well-known and widely used. Bitcoin is currently experiencing a bullish trend, recently reaching a new all-time high of $70, 000 (INR – 57,92,664). Technical indicators suggest a strong possibility of further price increases in the Bitcoin chart and expect a rise to $100,000 in the near future. Growing institutional adoptions and a relatively weak US dollar causes the jump in the cryptocurrency market.
The US Securities and Exchange Commission (SEC) approved the US-listed Bitcoin exchange traded funds (ETFs) in January,2024. A spot bitcoin Exchange Traded Fund (ETF) is an investment vehicle that allows ordinary investors exposure to the price moves of bitcoin in their regular brokerage accounts. Unlike bitcoin futures ETFs, a spot bitcoin ETF invests directly in bitcoins as the underlying asset, not derivatives contracts based on their prices. The US SEC’s approval of 11 spot bitcoin ETFs in late January marked a milestone for the industry.
What’s Next?
Bitcoin shows a U turn recovery in the weekly price chart from 15000. Nearby support is placed at 59000-60000 zone. 70000 acts as the nearest hurdle for Bitcoin. A pull back to the support zone (59000-60000) and the next impulse move can take Bitcoin to the ambitious $100,000 mark in the near future. Bitcoin satisfies the overbought condition when we look at the RSI indicator (weekly chart). If Bitcoin breaks the $70,000 mark straight, it will act as the support.
What is Crypto Currency?
Cryptocurrency is a form of digital or virtual currency that uses cryptography for security and operates independently of a central authority, such as a government or bank. Unlike traditional currencies, which are issued and regulated by a central authority, cryptocurrencies typically use decentralized control, enabled by blockchain technology.
- Decentralization: Cryptocurrencies operate on decentralized networks of computers, known as blockchains. These networks are distributed across multiple nodes, making them resistant to censorship and tampering.
- Cryptography: Cryptography is used to secure transactions and control the creation of new units. Public and private keys are used to verify ownership and facilitate secure transactions.
- Blockchain: A blockchain is a distributed ledger that records all transactions across a network of computers. Each block contains a cryptographic hash of the previous block, linking them together and creating a chain of blocks.
- Limited Supply: Many cryptocurrencies have a limited supply, meaning there is a maximum number of coins or tokens that can ever be created. This scarcity can contribute to their value.
- Pseudonymity: Transactions in most cryptocurrencies are pseudonymous, meaning they are not directly tied to real-world identities. Instead, users are identified by their cryptographic addresses.
- Borderless Nature: Cryptocurrencies can be sent and received anywhere in the world, as long as the sender and receiver have internet access. This can facilitate cross-border transactions without the need for intermediaries like banks.
NB: We do not provide financial services or investment advice. All the information shared in this article is solely for educational and learning purposes and the view of the author only.
