Current situation:
As of December 2024, Bitcoin has reached an all-time high of $106,807, with its market cap surpassing $2 trillion. This makes it the world's seventh-largest asset, comparable to the largest corporations. The growth is supported by increasing interest from institutional investors such as BlackRock, whose Bitcoin ETF has already surpassed $50 billion in assets under management. El Salvador also reported that its Bitcoin reserves have returned over 123%【142】【143】.
Key events:
1. Institutional Investments: MicroStrategy Increases Its Bitcoin Reserves to 402,100 BTC with an Additional $1.5 Billion Investment, Strengthening Confidence in Bitcoin as a Long-Term Asset【143】
2. Regulation: The US is taking a more relaxed approach to the crypto industry, adding optimism to the market. In particular, with the arrival of new pro-crypto leaders in regulatory bodies, strategies are being discussed to further support the blockchain industry【142】.
3. Global Politics: Brazil Considers Adding Bitcoin to Its National Reserves, Which Could Boost Government Trust in Cryptocurrency【142】
Is it worth investing?
Bitcoin remains the most reliable cryptocurrency, especially given the growth of institutional interest and limited supply. However, analysts warn that the peak of the current cycle is approaching, which may occur in the first half of 2025. After reaching new heights, a significant correction is possible, which is typical for the crypto market【143】.
Recommendations
1. Long-term investors: Bitcoin continues to prove its role as “digital gold,” making it a good choice for portfolio diversification.
2. Short-term traders: Be cautious due to high volatility and potential corrections after the recent rapid rise.
Before investing, it is important to consider the risks and monitor regulatory and market changes.
