Bitcoin has experienced a surprising rally, marking a notable resurgence in its value, despite the fall of prominent figures in the cryptocurrency market.
This phenomenon has raised expectations among optimistic investors, who are betting that the recent legal persecutions mark a turning point in the turbulent history of cryptocurrency, opening the doors for mass adoption by Wall Street.
The price of Bitcoin has climbed approximately 160% this year, reaching a high of $44,000.
This rally has restored confidence in the cryptocurrency market, countering the pessimism that had prevailed for a considerable time.
The recent $4.3 billion fine imposed on Binance for violations of money laundering regulations and financial sanctions has not stopped the operation of this platform, which has contributed to strengthening investor confidence.
The bullish outlook is also based on the possible approval of Bitcoin-backed exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC).
This approval could be a catalyst to attract a greater number of retail investors to the cryptocurrency market.
Despite this optimism, concerns remain about the long-term sustainability of the Bitcoin rally
Analysts have expressed concerns about the continuity of regulation and uncertainty over whether the SEC will give the go-ahead for a Bitcoin ETF.
It is projected that in April of next year, the amount of Bitcoin miners will receive for verifying cryptocurrency transactions will be cut in half, decreasing the supply of new bitcoins on the market.
This event, known as a halving, has historically had a significant impact on the price of Bitcoin, as it can increase its scarcity and, therefore, its value.
Tim Frost, CEO of Yield App, a cryptocurrency platform that offers returns to clients, noted that this technical change is expected to be a strong driver of the price of Bitcoin as mining becomes more difficult and less profitable, while scarcity continues to increase.
Although questions remain about its long-term stability and the reaction of regulatory authorities, this rally marks a new phase in the history of Bitcoin, with hopes of broader adoption and a possible change in Wall Street’s perception towards cryptocurrencies.