TL;DR
- The recent rise in Bitcoin (BTC) price has caused a historic 600% increase in the sales of hardware wallets like Trezor, driven by BTC approaching $100,000.
- Factors such as Bitcoin’s halving, lower interest rates, and a more favorable regulatory stance following Donald Trump’s electoral victory have been key to this growth.
- Despite the optimism, analysts warn of potential corrections of up to 30% in the market, similar to what occurred during the 2021 bull cycle.
The recent rise in Bitcoin’s price has led to a significant increase in the demand for self-custody solutions, particularly in regard to hardware wallets like those from Trezor.
Explosive Growth for Hardware Wallets
According to the provider, its weekly wallet sales saw a historic 600% spike, coinciding with Bitcoin’s all-time high of $99,645 recorded on November 22. This phenomenon is the result of several factors, including Bitcoin’s recent halving, a favorable economic environment with lower interest rates, and Donald Trump’s electoral victory, which led to a shift toward a more crypto-friendly regulatory stance.
Adoption of self-custody is growing! 🚀 @Cointelegraph
Still on the sidelines? #TrezorBlackFriday has you covered. Get a hardware wallet starting at just $35!
👉 https://t.co/53UaxqgwhRhttps://t.co/lPis1CcJ0U
— Trezor (@Trezor) November 27, 2024
The increase in demand for self-custody solutions such as Trezor reflects a change in investor attitudes. Users are seeking more security and full control over their digital assets. As Bitcoin approaches the $100,000 mark, users have been withdrawing large amounts of BTC from centralized exchanges, which has led to a significant decrease in Bitcoin reserves on these platforms. In 2024 alone, around 427,000 BTC, worth approximately $40 billion, have been withdrawn, marking the lowest exchange reserves in six years.
Bitcoin Could Experience a Severe Correction
The positive environment generated by clearer regulatory policies has also favored institutional adoption and created a conducive climate for crypto businesses, further strengthening investor optimism. Meanwhile, Bitcoin options traders show confidence in BTC’s future. Nearly half of them bet that BTC will surpass $100,000 by the end of 2024, with some even projecting it could reach $150,000.
However, analysts are warning about market volatility. Despite the bullish trend, Bitcoin is expected to experience corrections of up to 30%, similar to what occurred during the 2021 bull cycle. While some analysts maintain an optimistic outlook, suggesting that Bitcoin could consolidate in the $90,000 range before continuing its upward trend, it is crucial for investors to manage risks properly
