Bitcoin, not memecoins, will continue to play a crucial role in the ongoing bull run, thanks to the introduction of Bitcoin exchange-traded funds (ETFs) and the impact of the halving event. This takeaway emerged on the first day of the Next Block Expo in Warsaw, where industry experts discussed the major trends shaping the current market cycle.
Bitcoin (BTC) remains the focal point and driving force behind market sentiment in 2024, according to four experts interviewed by Cointelegraph. Adrian Zduńczyk, the founder of the trading education platform The Birb Nest, pointed out that historical data from previous halving events indicates significant upside potential for BTC until 2025. He noted that between 2011 and the peak of 2013, the price of BTC grew by 9,000%.
Highlighting the gains made during the Bitcoin bull runs in 2017 and 2021, which saw the value of BTC increase by 3,000% and 700% respectively, Zduńczyk emphasized that Bitcoin remains a key indicator of market performance.
Ben Yorke, the ecosystem vice president at exchange platform WooX, also highlighted the elimination of regulatory ambiguity surrounding Bitcoin. He cited the approval of Bitcoin ETFs in the U.S. and Hong Kong by government and institutional entities as evidence of this. Yorke believes that this regulatory approval makes Bitcoin an attractive proposition for young people worldwide.
Yorke also mentioned that criticisms of Bitcoin’s utility are being addressed with the proliferation of the Lightning network and other functionalities that allow users to have full control over their BTC. He believes that the adoption of Bitcoin services like Lightning will help dispel these arguments.
Miko Matsumura, the general partner of cryptocurrency asset fund Gumi Crypto, echoed these sentiments, stating that the development of infrastructure to enhance Bitcoin’s usability for payments will attract more capital into the ecosystem.
Zduńczyk added that the timing of regulatory approvals for Bitcoin ETFs aligns with the seasonality of investment cycles, with the summer months often driving the performance of traditional markets like the S&P 500 and the Nasdaq. He also pointed out that historical trends indicate that U.S. presidential elections have influenced the performance of traditional markets, which has spilled over into Bitcoin in the past.
In conclusion, Bitcoin is expected to maintain its position as a driving force in the bull run, supported by the introduction of Bitcoin ETFs and the impact of the halving event. The elimination of regulatory ambiguity, the development of infrastructure, and the historical trends observed during previous market cycles all contribute to the positive outlook for Bitcoin’s future performance.