Bitcoin’s Bull Run: Why the Cryptocurrency’s Price Has Stalled

The Nasdaq Composite has been on a tear, making seven consecutive record highs. Meanwhile, Bitcoin’s price has remained stagnant, hovering around $65,000. What’s behind this disparity, and when can we expect Bitcoin’s price to surge again?

Digesting the Halving

Bitcoin’s price has been subdued since the halving event in mid-April, which cut in half the amount of Bitcoin that miners receive for maintaining the blockchain. While the halving is expected to push the price upward, its effects usually take a few months to become apparent. Additionally, ETF demand in the US could have a significant impact on Bitcoin’s price, as more advisers and firms onboard new investors over the coming months.

ETF Outflows

Last week saw the worst period in spot Bitcoin ETF outflows since March, with $620 million withdrawn. This outflow has contributed to the negative sentiment in the market, affecting Bitcoin’s price action. However, the upcoming launch of Ethereum ETFs, coupled with recent positive macroeconomic data, suggests that Bitcoin and major crypto assets are likely to soon reverse their trend and aim for new cycle highs.

Mt. Gox

The collapse of Mt. Gox, once the world’s largest crypto exchange, has loomed over the industry since 2014. Roughly $9.2 billion worth of Bitcoin has been held up in the bankruptcy, waiting to be paid back to creditors. The market could be waiting for these redemptions to occur, which could flood the market and impact Bitcoin’s price.

Miners Selling Holdings

Bitcoin miners have also been putting pressure on the top cryptocurrency’s price. While the halving constrained the amount of new Bitcoin that mining firms can create and sell, most of these operations still hold formidable Bitcoin reserves. The sector has dumped roughly $300 million of its Bitcoin reserves since the beginning of the year, according to analytics firm CryptoQuant.

Shifting Investment Trends in Israel

Investment trends in Israel have evolved significantly in recent years. Traditionally, Israelis have focused on real estate and stock markets. However, the expansion of available investment funds in Israel has led individuals to explore a broader range of investment opportunities. The rise in interest rates has simplified the process of investing money and has yielded favorable returns. Before this shift, cryptocurrencies like Bitcoin attracted considerable attention. Bitcoin’s value soared from around $40,000 to the $70,000 range, making it increasingly appealing to investors.

Bitcoin’s price has remained stagnant, but experts predict a surge to $200,000 over the next year.

Governments worldwide are starting to recognize various digital currencies, incorporating them into traditional investment channels. However, regulatory frameworks are still catching up with new technologies, leading to instances of fraud that have affected some investors.

Bits of Gold, a leading Israeli tech company, offers a reliable option for those interested in digital currency investments.

One challenge when purchasing crypto is transferring it to your bank account; Israeli banks sometimes block such transfers, especially if the funds originated from digital currencies. However, transfers from supervised bodies like Bits of Gold are more comfortable and organized. Bits of Gold addresses this issue by managing the tax on the interest you earn, sparing you from dealing directly with tax authorities. Additionally, transactions can be conducted in US dollars, eliminating the need for currency conversion fees from shekels to dollars.

Investing in crypto represents a novel form of investment. It is important to note that the associated risks may be greater than those of other investment avenues. However, given the trajectory of technology, regulation, and the potential for growth, it could serve as a viable investment option.