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Bitcoin Risk at All-Time Low: Here’s the Explanation

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Once viewed as a speculative experiment, Bitcoin has matured into a secure and trusted digital asset.

Here’s a closer look at why the risk associated with BTC has reached an all-time low.

Why Bitcoin Risk Has Never Been Lower

Proven Technical Robustness

Early doubts about Bitcoin’s technical foundations have been dispelled. Satoshi Nakamoto’s engineering decisions have proven effective, including the one-megabyte block size and ten-minute block frequency. The network has mined over 846,448 blocks without a critical hack, showcasing its resilience and security.

Moreover, many protocols are exploring ways to leverage Bitcoin’s security to enable staking across different blockchain platforms. Implementing BTC, a Proof of Work (PoW) asset, in a Proof of Stake system, will help strengthen other networks’ safety.

“Questions early on persisted around Satoshi’s engineering prowess. Was one megabyte block size a good idea? How about the 10 minute block frequency? Will the cryptography suffice? Is it hackable? But with time, Satoshi’s programming competence had been vetted” Komodo Chief Technology Officer Kadan Stadelmann told BeInCrypto.

Read more: How To Buy BTC and Everything You Need To Know

Bitcoin’s hash rate, a measure of its computational security, continues to reach new highs. This increase in mining power reinforces the network’s security, making it more stable against potential attacks.

Regulatory Acceptance

The initial uncertainty surrounding Bitcoin’s regulatory status has been addressed. In 2014, the IRS designated it as property, removing fears of taxes on unrealized gains. The US Commodity Futures Trading Commission followed suit in 2015, declaring BTC a commodity. This regulatory clarity has provided a stable environment for the OG cryptocurrency to thrive.

Once BTC’s regulatory status was clarified, attention shifted to the potential threat from copycat digital assets. This led to the emergence of numerous altcoins. However, the presence of altcoins has only strengthened Bitcoin’s position. Today, BTC and the broader cryptocurrency market are viewed as distinct industries, with Bitcoin standing out on its own.

Institutional Endorsements

The perception of Bitcoin shifted dramatically when institutions began investing. In August 2020, MicroStrategy purchased $250 million worth of BTC, signaling confidence in its stability.

“Bitcoin is a swarm of cyber hornets serving the goddess of wisdom, feeding on the fire of truth, exponentially growing ever smarter, faster, and stronger behind a wall of encrypted energy,” MicroStrategy’s CEO Michael Saylor states.

Saylor’s endorsement of Bitcoin as a powerful, decentralized asset has further bolstered its reputation. Following MicroStrategy, Tesla and Square invested significantly in BTC, increasing its credibility.

Read more: Top 11 Public Companies Investing in Cryptocurrency

Public Companies Owning BTC
Public Companies Owning BTC: buybitcoinwolrdwide.com

Adoption by Nation-States

Three years ago, President Nayib Bukele’s decision to make BTC legal tender in El Salvador garnered global attention. On September 7, 2021, the “Bitcoin Law” took effect, making El Salvador the first country to adopt it as an official currency.

President Nayib Bukele was recently sworn in for a second term, reaffirming his pro-Bitcoin stance. The country has continued to purchase Bitcoin, acquiring up to 30 BTC per month. As of May, El Salvador had over $70 million in unrealized profits from its crypto investments.

Despite some criticism, surveys show significant awareness and usage of BTC wallets, indicating successful integration. Kadan Stadelmann notes an in-person survey of 1,800 representative households, the findings of which were validated by a blockchain analytics firm, researchers found nearly 68 percent of potential users knew about Chivo Wallet and 78 percent of that particular group at least attempted to download the app.

In 2022, Central African Republic (CAR) echoed El Salvador’s move. A mineral-rich nation, one of the poorest in the world and mired in an ongoing Civil War, also adopted Bitcoin as a legal tender, arguing that it will secure an independent financial future for the country. 

Growing Investment Potential

The US Securities and Exchange Commission’s (SEC) approval of the spot Bitcoin ETF marked a massive shift in the regulatory field, indicating a growing acceptance of digital currencies within traditional financial systems. No wonder sovereign wealth funds and other major financial entities are beginning to view Bitcoin as digital gold.

Wall Street mogul BlackRock has been educating these institutions about Bitcoin, anticipating their entry into the market. The ongoing interest from large-scale investors suggests a stable future for Bitcoin.

“Many of these interested firms — whether we’re talking about pensions, endowments, sovereign wealth funds, insurers, other asset managers, family offices — are having ongoing diligence and research conversations, and we’re playing a role from an education perspective,” said Robert Mitchnick, BlackRock’s head of Bitcoin and crypto.

Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach

Bitcoin ETF Historical Holdings
Bitcoin ETF Historical Holdings. Source: CryptoQuant

While government and corporate adoption are not essential for BTC’s success, they contribute significantly to its legitimacy. With inflation concerns and the search for secure alternatives, Bitcoin’s appeal as a hedge grows. Its established security and increasing mainstream acceptance suggest that Bitcoin’s experimental phase is well behind it.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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PlanB’s Bitcoin Price Roadmap To $1,000,000 Starts Playing Out, Here’s The Rest Of The Prediction

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The crypto industry has been riddled with intense activity in the past few weeks, coinciding with a run before and after the US elections. Much of the activity has been centered on the Bitcoin price, although spilling over into other cryptocurrencies

The Bitcoin price first broke above $70,000 in late October just as the US election campaigns drew to a close, which ultimately resulted in Donald Trump being elected as the next president in November.

Interestingly, these events and their timelines were predicted on social media platform X by a popular crypto analyst. Particularly, these predictions were the first two in a longer outlook of the Bitcoin price reaching $1 million.

PlanB’s Bitcoin Price Prediction Timeline

According to a social media post in September by crypto analyst Plan B, these predictions were merely the beginning of a more extensive roadmap that could ultimately lead to Bitcoin reaching $1 million in 2025.

PlanB’s vision for Bitcoin’s price trajectory is an ambitious roadmap that began with the October surge to $70,000. Next, he predicted Donald Trump’s election victory in November, which would eventually end the Biden/Harris/Warren/Gensler war on crypto and set the stage for the Bitcoin price to reach $100,000 before December. After this, PlanB anticipates a massive wave of capital from new Bitcoin exchange-traded funds (ETFs) to drive the Bitcoin price up to $150,000 by the end of December 2024. 

By January 2025, he foresees a resurgence of crypto companies back to the US, which would push the price further to $200,000. However, he suggested that some early investors may cash out in February 2025, which would cause a brief dip back to $150,000. March 2025 will arrive with another upswing to $300,000 as Bitcoin becomes legal tender in countries like Bhutan, Argentina, and Dubai.

April 2025 will see the United States begin accumulating Bitcoin as a strategic reserve under Trump’s administration, which would drive the Bitcoin price to $400,000. The ripple effect of this move is expected to continue into May 2025 as many other countries start to follow in the footsteps of the US. This, in turn, would drive Bitcoin up to $500,000 in May 2025. 

The analyst envisions AI-powered trading algorithms to start using Bitcoin in arbitrage trading in traditional finance, which would cause a surge to $600,000 in June 2025. Notably, PlanB expects a crazy FOMO (fear of missing out) phase to kick in after this, with a relentless wave of buying between July and December 2025 that would cause the Bitcoin price to peak above  $1,000,000. 

However, he projects that this peak will lead to a distribution phase in 2026, resulting in Bitcoin pulling back to around $500,000. The roadmap then forecasts a bear market by 2027, with the Bitcoin price eventually finding a bottom near $200,000.

Current State Of BTC

At the time of writing, Bitcoin is trading at $75,120, having recently reached a new all-time high of $76,243 in the past 24 hours. However, this might not stand for long, as current momentum suggests the Bitcoin price reaching $80,000 very soon.

Bitcoin price chart from Tradingview.com
BTC price still holding $74,000 | Source: BTCUSD on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com



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Trump and Lummis Unite on $76 Billion National Bitcoin Reserve

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Senator Cynthia Lummis is making a bold new proposal to establish a Bitcoin reserve in the US. This follows President-elect Donald Trump’s recent declarations in the run-up to the US elections.

Her bill, the BITCOIN Act of 2024, aims to have the US Treasury acquire 1 million Bitcoin (BTC) over five years, a massive move that would position the US as a leader in financial innovation.

Senator Cynthia Lummis Advocates Bitcoin Reserve

The Wyoming senator wants the plan spread across five years, with purchases of 200,000 BTC tokens every year to develop America’s Bitcoin reserve. At current rates, that translates to an investment of about $76 billion.

“We are going to build a strategic Bitcoin reserve,” Lummis shared on X (formerly Twitter).

Notably, Lummis’s side of the political divide now holds the majority in both the Senate and House committees. According to Stand With Crypto, 261 pro-crypto candidates have been elected to the House of Representatives against 116 anti-crypto candidates. On the other hand, there are 17 pro-crypto candidates in the Senate and 12 anti-crypto lawmakers.

Read more: How To Buy Bitcoin (BTC) and Everything You Need To Know

BTC Price Performance
BTC Price Performance. Source: BeInCrypto

With this, the chances of Senator Lummis’ Bitcoin Bill passing through Congress are far better. This is as opposed to the Biden administration, where efforts toward bipartisan bills were greatly stifled due to a divided Congress. 

This political alignment, along with Bitcoin’s recent surge to a new all-time high, adds momentum to Lummis’ initiative. Industry leaders, including Michael Saylor of MicroStrategy and Samson Mow, have shown support, stressing Bitcoin’s potential as a national asset.

Mow highlighted Bitcoin’s value at sub-$100,000, pointing out its potential strategic importance if prices soar above $500,000 in coming years.

“Good luck Senator Lummis. I suggest acting quickly. The difference between acquiring Bitcoin below $0.1 million vs. $0.5 million will have massive geopolitical ramifications,” Mow wrote.

Framework for Secure BTC Management

The BITCOIN Act does not stop at Bitcoin acquisition. It also introduces a framework for managing Bitcoin securely within Treasury vaults. It aims to reduce national debt by half by 2045. This would serve as a hedge against inflation and a potential powerhouse for US debt management.

President-elect Trump publicly endorsed the creation of a national Bitcoin reserve during the Bitcoin 2024 conference in Nashville. His remarks continue to stir interest among crypto proponents and Republicans as the then-presidential aspirant emphasized Bitcoin as a “core of financial independence” for the US.

 “It will be the policy of my administration…to keep 100% of all the Bitcoin the US government currently holds or acquires into the future. This will serve in effect as the core of the strategic national bitcoin stockpile…It’s been taken away from you,” Trump said.

Meanwhile, state governments are also eyeing Bitcoin, with Florida’s Chief Financial Officer Jimmy Patronis recently endorsing Bitcoin as a “strategic reserve” for state pensions. Florida’s pension fund, among other states like Wisconsin and Michigan, would benefit from Bitcoin’s long-term appreciation, diversifying investments amid economic uncertainty.

Nevertheless, while the plan has garnered support, it raises questions about economic risks and global impacts. Some economists warn of potential volatility in tying national debt management to cryptocurrency. However, advocates point to Bitcoin’s finite supply and growing international adoption as a hedge against inflation and market fluctuations.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

With Trump’s support, a Republican-led Congress, and growing state-level backing, the plan has momentum. This makes the concept of a national Bitcoin reserve a closer reality than ever before. If implemented, the BITCOIN Act could place the US at the forefront of a global financial evolution.

“Other countries will follow,” another popular user on X added.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Bitcoin Price Might Never Dip Below $70,000 Again After The US Elections, Here’s Why

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The US presidential elections have come and gone, and the only thing left is the results. Interestingly, a snapshot of the Bitcoin price during the elections showed Bitcoin trading just above $70,000. This is a notable price to follow, as history shows this might be the price support for Bitcoin in the foreseeable future. Interestingly, this phenomenon goes back to the Bitcoin price levels in previous US elections.

Why Bitcoin Price Might Never Dip Below $70,000 Again

Bitcoin has largely been on an uptrend since Monday, when it kicked off a run after it rebounded to the upside from $67,000. This run continued, allowing the Bitcoin average price during the 2024 presidential elections to be around $70,110. 

Historically, U.S. election cycles have often been accompanied by shifts in Bitcoin’s value, marking crucial price points that tend to establish longer-term support levels. 

To understand this trend, we need to look at the past four election cycles. Back in 2012, during the early days of the crypto industry, the Bitcoin price traded at a modest $10 on the US presidential election day, a price point that now seems almost unimaginable. By 2016, Bitcoin’s election-day price had climbed to $710, setting a new baseline that it has never revisited since.

The most interesting one was what happened after the 2020 US presidential election, when the Bitcoin price was trading around $13,555. The Bitcoin price has never revisited this price point again since then up until the time of writing. What’s more interesting is that this price point even served as the lowest support level during the 2022 bear market price crash. 

If these historical trends are any indication, the 2024 election-day price of $70,110 could become a similar stronghold and a price floor for Bitcoin in the coming years.  This level might even serve as critical support should a bear market eventually take hold at any point.

Bitcoin price
Source: X

What’s Next For The Bitcoin Price?

As of now, Bitcoin is trading above $73,200 after experiencing an intense surge over the past 24 hours. This remarkable rally saw Bitcoin climb nearly 10% within a single day, reaching an intraday high of $75,358. This milestone has now become Bitcoin’s highest trading level, as it broke past its previous all-time high of $73,737 in March 2024.

Although the Bitcoin price has pulled back slightly likely due to some investors cashing in on recent profits, the rally is expected to resume anytime from now. Considering this momentum, Bitcoin remains well-positioned to challenge the $80,000 mark before the end of November, especially if buying interest continues to drive the current uptrend.

Bitcoin price chart from Tradingview.com
BTC price above $74,000 | Source: BTCUSD on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com



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