The next 6-18 months will be fascinating – ETF approval, April Halving, Recession to QE progression, and the continued destruction of the bond market will be a make-or-break moment for many crypto assets, especially for Bitcoin. The market is booming with full of unseen action.
Surprisingly, the recent crypto market surge has seen altcoins and speculative tokens taking the lead, while Bitcoin held steady at around $35,000.
Bitcoin’s impressive 28% surge over the past month represents its most robust performance since January, largely fueled by expectations of the first spot exchange-traded funds (ETFs) focused on cryptocurrency gaining approval in the United States. Overall the market is buoyed by speculation that the Federal Reserve may have completed its interest-rate hiking cycle.
With analysts projecting rate cuts starting in March 2024, this presents the right time for small traders to enter the liquidity pool with minimal risk. Let’s see.
Bitcoin Playbook to Hold Bitcoin, WorthWhile?
Looking at the current market scenario, Michael Saylor, the CEO of MicroStrategy, is advocating for small companies to adopt a Bitcoin strategy to compete with the so-called “Magnificent Seven” corporations, which are major contributors to the S&P 500’s year-to-date increase of nearly 13%.
These companies include Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla, with only Tesla holding Bitcoin on its balance sheet. In a recent interview, Saylor highlighted that by embracing Bitcoin, companies can break away from traditional corporate approaches, preserve their capital, and enhance shareholder value.
https://x.com/saylor/status/1721627144931909833?s=20
The answer lies in?
“Bitcoin Holding” as the analyst himself reaping the benefits. This uses their balance sheets to store Bitcoin instead of acquisitions, stock buybacks, dividends, and loans, which are expensive and inefficient. As the largest corporate Bitcoin holder, MicroStrategy has made significant gains from its assets, which it bought for less than $30,000. He examines Bitcoin’s capacity to safeguard capital and reward shareholders, making it a viable strategy for smaller enterprises trying to compete in a world of inflation, high-interest rates, and technology-driven deflation.
John Deaton Weighs In
In response to Saylor’s comments, John Deaton pointed out the potential for Bitcoin’s demand to skyrocket due to the upcoming Bitcoin halving, coupled with the introduction of Bitcoin Spot ETFs and endorsements by major financial institutions. Deaton advised that financial advisors and money managers consider allocating more to Bitcoin, even doubling down if they already have a 1-5% exposure to the cryptocurrency. This underlines the growing recognition of Bitcoin’s value as an investment strategy in the corporate finance landscape.
Bitcoin Current Stats!
BTC shocked many by staying in a positive trading range over the weekend, despite expectations of a market drop. Its price rose 0.58% to $35,161.74 in 24 hours. Despite price volatility, the 16% increase in trading volume suggests strong buying activity, giving Bitcoin a decent opportunity to sustain its present level and maybe achieve new highs.
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