The price of Bitcoin (BTC) is currently witnessing a downward correction in conjunction with the large price movements in the crypto market. It is known that the largest and most popular digital currencies often determine the path of other currencies in the sector, and many analysts expect the price of Bitcoin to decline in the short term, as indicated by The most pessimistic forecast indicates that the price may fall below $20,000. However, there are many reasons for optimism. Although the value of Bitcoin may decline in the coming days and weeks – the current month of September may witness one of the worst levels of performance for this currency – the price is likely to rise significantly before the end of this year.
In this article, we provide you with a detailed presentation of four main reasons why Bitcoin’s performance is likely to improve at the end of this year. We also present to you the new Bitcoin BSC-BTCBSC as a potential alternative option to Bitcoin, and it is likely to outperform it in terms of performance.
One of the important reasons for optimism about the price of Bitcoin in the coming months is the approaching date of the expected halving process. It is likely that the halving will take place in mid-April, and the previous halving processes have caused the prices of the crypto market to soar, which has witnessed successful boom and bust cycles since the invention of Bitcoin. In 2009.
The “halving” process relates to the number of new Bitcoin coins that are issued on the Bitcoin blockchain every 10 minutes. 50 coins were produced every 10 minutes in the first cycle of Bitcoin’s life, decreasing by half to 25, then 12.5, then 6.25 coins in the years 2012, 2016, and 2020, respectively. May 2020 witnessed the last halving of this currency. In the same way, the expected halving will reduce the reward granted to miners of the Bitcoin transaction network for verifying each new transaction block to 3,125 coins, in addition to reducing the rate of increase in the supply of the coin by half, which will lead to an increase in demand for this currency and an increase in its price.
The above chart shows that all previous halvings caused significant price movements before and after the halvings occurred. Many crypto investors are well aware that we are just over six months away from this halving, which could mean that there is a good opportunity to buy large amounts of Bitcoin before the price soars during the next bull market.
Bitcoin exchange-traded funds (ETFs) are one of the main reasons why the price of Bitcoin has risen again in 2023, with the value of BTC nearly doubling when the price soared from $16,550 in January to reach $31,500 in mid-July. /July.
Leading investment firms – such as BlackRock, Fidelity, and VanEck – rushed to apply to establish these funds earlier this year, which contributed to high trading volumes and a significant increase in interest in Bitcoin.
These funds allow investors to access Bitcoin without having to buy or store it themselves, as exchange-traded fund managers play the role of custodians of financial assets. These funds will also be made available for trading on traditional stock exchanges if approved, and it is noteworthy that the US Securities and Exchange Commission (SEC) ) postponed taking the decision to approve the establishment of these funds, and the Commission is scheduled to decide on this matter in mid-October.
Bloomberg analysts believe that it is “75%” likely that these funds will be launched at the end of this year, as Jay Clayton, the former commissioner of the US Securities and Exchange Commission, said that adopting these funds “is a no-no “ It is a must.” This expected adoption is likely to cause the price of Bitcoin to rise immediately.
Furthermore, an analytical study conducted by crypto research firm K33 – formerly called Arcane Research – indicates that the increased probability of approval of exchange-traded funds (ETFs) for spot Bitcoin trades has not yet been reflected in the price of Bitcoin.
In a related context, Vetle Lunder, a prominent analyst, said in his report: “I strongly believe that the prevailing idea in the market is wrong and that we are definitely going through an important buying period. “I also think it would be a terrible mistake not to take advantage of current prices to buy and store Bitcoin.”
Given the above-mentioned points, many major companies and financial institutions expect the price of Bitcoin to rise in the future, and both exchange-traded funds (ETF) for spot trading of Bitcoin and the upcoming halving are major reasons for this optimism.
An analytical study conducted by the British Standard Chartered Bank expected that the price of Bitcoin would reach $50,000 and $120,000 at the end of 2023 and 2024, respectively.
In addition to exchange-traded funds and the aforementioned halving process, another key factor on which this study is based is the current movements of the currency supply, as the study indicates that miners are allocating significant resources to maintaining the blockchain, while selling smaller quantities of Bitcoin, which has caused an imbalance between supply and demand, which may cause the price to rise significantly.
The previous report added that “the high percentage of miners’ profits for each BTC currency they mine allows them to reduce the number of currencies available for sale while maintaining cash flows, which reduces the total supply of this currency, as well as raising higher prices “
In addition to regulating exchange-traded funds, regulators are moving forward in their efforts to regulate the crypto sector in general. It is known that the US Securities and Exchange Commission is engaged in judicial disputes with a number of crypto companies, and with the clarity of its hostile position on digital currencies, it seems that subjecting the sector to regulatory laws It is inevitable.
Regulating crypto is a very important issue in the UK and across Europe, for example, as some regulatory frameworks have already been put in place and more are being developed. These regulatory efforts are likely to contribute to raising the prices of leading digital currencies as a result of enhancing the confidence of investors who are hesitant in the sector when it is regulated, which will contribute to increased demand and significantly higher prices.
The growth and continued development of artificial intelligence (AI) is one of the most important topics that occupied public opinion in 2023, and companies, governments, and investors are striving to move quickly to keep pace with artificial intelligence technology in terms of the products they offer and how to manage this technology in general.
This technology has entered the crypto sector in a strong way, and some digital currencies linked to artificial intelligence achieved remarkable performance during the year, and investors and companies are rushing to use this innovative technology.
Bitcoin will not be immune to these powerful influences, as Cathie Wood, CEO of ARK Invest – one of the largest companies holding Bitcoin – believes that artificial intelligence technology can be a pivotal change point for Bitcoin. Wood appeared on a podcast talking about the potential compatibility between Bitcoin and artificial intelligence, where she said in a tweet:
"قد يغيّر الجمع بين بيتكوين والذكاء الصنعيّ طرق تنظيم الشركات بشكلٍ كبير، ما قد يتسبَّب بانخفاض التكاليف وازدياد الإنتاج بشكلٍ مدهش؛ لقد أذهلتني الإمكانات الهائلة التي يتم خلقها من قبل روّاد الأعمال في هذا المجال".
In a related context, ARK Invest recently published a report indicating that this investment company has evaluated the importance of using artificial intelligence in investment strategies. Earlier this year, Arthur Hayes – who gained the title of billionaire thanks to Bitcoin – spoke about the possibility of artificial intelligence causing new price movements for Bitcoin, as he believes that this innovative technology will realize the potential that distinguishes Bitcoin from other digital currencies thanks to its ability to preserve itself without the need for human intervention.
وقال آرثر: "من غير الممكن أن يسمح الذكاء الصنعيّ لنفسه بالاعتماد على أيِّ أصلٍ ماليٍّ تابع لحكومةٍ بشرية، ما يجعل كلاً من الذهب وبيتكوين الخيارَ الأمثل لهذه التقنية، الأمرُ الذي يُوجِد رابطاً بين الذهب و بيتكوين".
It is noteworthy that the ChatGPT robot – the artificial intelligence system that helped stimulate this trend in artificial intelligence – predicted that the price of Bitcoin would rise to between $35,000 and $50,000 at the end of this year.
Although the potential rise in the price of Bitcoin to the level of $50,000 at the end of this year may, if achieved, represent great news for investors, you can achieve significant returns by investing in alternative digital currencies. If the price of Bitcoin rises to $50,000, for example, it may achieve an increase of 90% compared to the current price of $26,200.
Bitcoin BSC-BTCBSC is a new project that may achieve greater gains than Bitcoin itself at the end of this year, as it offers its new currency at a very low price – $0.99 – that Bitcoin has not seen since 2011.
Despite the launch of BTCBSC this week, this currency – which is a new version of Bitcoin – has already garnered more than $200,000, and it is noteworthy that Bitcoin BSC contains the best features of the original digital currency, and even adds some improvements to it .
This promising project, which is built on the Binance Smart Chain, relies on the Proof of Stake (PoS) algorithm instead of the Proof of Work (PoW) algorithm used by Bitcoin, which means that this new project outperforms Bitcoin in terms of effectiveness, scalability, and transaction fees. And environmental impact.
It should be noted that the Bitcoin BSC project offers generous staking rewards, as owners of this currency can stake their currencies in the staking pool and earn staking rewards through this currency. The staking interface on the BTCBSC website indicates that more than 100,000 coins have already been staked in the staking pool, which will generate annual returns exceeding 2,000% currently, but this percentage will decrease significantly as more coins are staked; However, mortgaging currencies not only allows investors to achieve significant returns, but also stimulates other investors to buy the currency, which contributes to reducing purchasing pressure and increasing the price.
It is noteworthy that the price of BTC20 – another recently launched version of Bitcoin – rose by 600% when it was launched on trading platforms earlier this year, and it is likely that Bitcoin BSC will achieve similar success, especially if we know that trading fees in the Binance blockchain Smart is much lower than the BTC20 trading fees built on the Ethereum blockchain.
In addition to the current price of BTCBSC being equivalent to the price of Bitcoin in April 2011, the circulating supply of this coin will be similar to its counterpart Bitcoin, with four million coins allocated for the initial pre-sale, while 2.125 million coins are Allocated as a reserve in case demands exceed On the currency offered for pre-sale, all of them will be sold at a price of $0.99 per coin. Accordingly, the supply available for trading when this currency is launched will reach 6.125 million coins – representing 29% of the total supply – while an additional 420,000 pre-issued coins have been allocated – i.e. 2%. Of the total supply – to provide liquidity on trading platforms.
The total available supply of this currency is 21 million coins – which is equivalent to its counterpart in Bitcoin – and the remaining 14.455 million coins will be kept for the mortgage pool, so that the entire total supply will be released over a period of 120 years. – likewise from Bitcoin as well – which gives the project a very long hypothetical lifespan. It encourages investors to buy currencies in conjunction with their release for trading.
You can obtain additional information by reviewing the Bitcoin BSC project white paper, and you can also find out the latest news about the project by joining its Telegram channel.
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