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Bitcoin Looks Bullish Amid Mass Adoption (Video Included)
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Bitcoin: Bends But Doesn’t Break
Over the past year, Bitcoin has shaken off lousy news, such as the FTX collapse, and climbed the proverbial “wall of worry” to double in price.
“The Halvening”
Last month, Bitcoin experienced its “halving event.” This event occurs approximately every four years, reducing the rate at which new Bitcoins are created by half.
Historically, Bitcoin tends to retreat slightly in the days after the halving event before ripping higher over the next year, thanks to more scarcity and the inflation controls inherent in the world’s largest cryptocurrency. The first three halvings produced gains of 9,133%, 281%, and 562% one year later!
Election Year Seasonality
Seasonality in markets refers to the tendency of stocks or assets to exhibit certain patterns or trends during specific times of the year. Recurring events, such as holidays, economic cycles, or seasonal trends in various industries can influence these patterns. In fact, investors who simply followed historical seasonal trends for US equities in 2023 dramatically outperformed. For Bitcoin, presidential election years are incredibly bullish. In the past three presidential election years, Bitcoin returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%. Though the sample size is small because of Bitcoin’s relatively short existence, the numbers are robust enough to consider.
Mass Adoption Dominoes are Beginning to Fall
However seasonality and the halving are not the only bullish catalysts for Bitcoin. Payment juggernaut Block ((SQ - Free Report) ) (formerly Square) announced it will invest 10% of its gross profit from Bitcoin products into Bitcoin.
MicroStrategy ((MSTR - Free Report) ),the first company to adopt the Bitcoin standard, has climbed 750% over the past five years. Meanwhile, El Salvador has already adopted Bitcoin. Could these be the first dominoes to fall before mass adoption?
It sure seems that way. According to a recent SEC filing BNP Paribas, the second-largest European Bank bought Blackrock’s wildly popular IBIT Bitcoin ETF.
Adding to the barrage of positive Crypto news is Coinbase ((COIN - Free Report) ). The leading crypto exchange announced EPS of $4.4, smashing the Street’s estimate of $1.07.
But is it too late to join the Bitcoin trade? Retail sentiment says no. Despite its strong performance, Bitcoin interest is hovering near multi-year lows, a sign that retail hasn’t jumped onboard yet.
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Bitcoin Looks Bullish Amid Mass Adoption (Video Included)
Bitcoin: Bends But Doesn’t Break
Over the past year, Bitcoin has shaken off lousy news, such as the FTX collapse, and climbed the proverbial “wall of worry” to double in price.
“The Halvening”
Last month, Bitcoin experienced its “halving event.” This event occurs approximately every four years, reducing the rate at which new Bitcoins are created by half.
Historically, Bitcoin tends to retreat slightly in the days after the halving event before ripping higher over the next year, thanks to more scarcity and the inflation controls inherent in the world’s largest cryptocurrency. The first three halvings produced gains of 9,133%, 281%, and 562% one year later!
Election Year Seasonality
Seasonality in markets refers to the tendency of stocks or assets to exhibit certain patterns or trends during specific times of the year. Recurring events, such as holidays, economic cycles, or seasonal trends in various industries can influence these patterns. In fact, investors who simply followed historical seasonal trends for US equities in 2023 dramatically outperformed. For Bitcoin, presidential election years are incredibly bullish. In the past three presidential election years, Bitcoin returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%. Though the sample size is small because of Bitcoin’s relatively short existence, the numbers are robust enough to consider.
Mass Adoption Dominoes are Beginning to Fall
However seasonality and the halving are not the only bullish catalysts for Bitcoin. Payment juggernaut Block ((SQ - Free Report) ) (formerly Square) announced it will invest 10% of its gross profit from Bitcoin products into Bitcoin.
MicroStrategy ((MSTR - Free Report) ),the first company to adopt the Bitcoin standard, has climbed 750% over the past five years. Meanwhile, El Salvador has already adopted Bitcoin. Could these be the first dominoes to fall before mass adoption?
It sure seems that way. According to a recent SEC filing BNP Paribas, the second-largest European Bank bought Blackrock’s wildly popular IBIT Bitcoin ETF.
Adding to the barrage of positive Crypto news is Coinbase ((COIN - Free Report) ). The leading crypto exchange announced EPS of $4.4, smashing the Street’s estimate of $1.07.
But is it too late to join the Bitcoin trade? Retail sentiment says no. Despite its strong performance, Bitcoin interest is hovering near multi-year lows, a sign that retail hasn’t jumped onboard yet.