Bitcoin: Is the perfect storm brewing here?

Bitcoin had lost around half of its value from its all-time high in 2022. However, after a long sideways phase, it recently managed to break above $30,000. In the run-up to the next Bitcoin halving in April next year, there now seems to be plenty of room for upward movement, especially as more and more investors are able to trade cryptocurrencies more easily and securely.

Bitcoin: Like a phoenix from the ashes!

After the devastating crash of the cryptocurrency Bitcoin from over $60,000 to under $16,000 almost exactly a year ago, some bankers from the financial sector establishment were already speculating on a foreseeable end to the unloved decentralized currency competition. This crisis was also fueled by the spectacular bankruptcies in the United States: from FTX to Silicon Valley Bank and Signature. But once again, things turned out very differently: Bitcoin, Ether and co. recovered significantly. Bitcoin is now trading at over $34,000 again. The initial trigger for the rally in recent months was the applications by various issuers in the USA for the approval of ETFs on Bitcoin. Since then, investors have been speculating that the approval of structured products in the US would lead to a noticeable increase in the availability and acceptance of Bitcoin and Co. as an independent asset class.

The “new normal” in investor portfolios

But this is just the tip of the iceberg when it comes to the acceptance of digital currencies and tokens. A lot is actually happening in the traditional banking sector. More and more established banks such as the venerable Luzerner Kantonalbank, Zuger Kantonalbank and St. Galler Kantonalbank are now also offering customers the opportunity to trade and hold digital assets. Thurgauer Kantonalbank is also considering the topic. In Switzerland in particular, cryptoassets are clearly becoming the new normal in investors’ custody accounts.

Also on the rise in Germany

What is happening in the banking country of Switzerland also seems to be emerging in other European countries. Baader Bank is currently trying to position itself as a multiplier in the German banking landscape. The Munich-based bank has created a white-labeling solution that allows other banks to offer trading in a variety of digital currencies securely and easily to their customers. The first neobroker is already using this service. Private investors can trade 33 cryptocurrencies via finanzen.net zero and store them directly in their online custody account. Almost a year ago, Baader Bank also announced that it would offer crypto trading by taking over account and custody account management in the smartbroker’s B2B2C model.

Many banks are waiting in the wings for crypto trading

And there’s more: according to Andy Flury, founder and CEO of Wyden, retail banks across Europe are currently working on integrating trading systems for digital currencies. He should know, as Wyden supports both Luzerner Kantonalbank and Baader as customers for its trading platform for cryptoassets. A total of 10 banks now use the Swiss company’s trading system. Wyden is one of the leading operators and developers of trading platforms for digital assets for institutional clients. Wyden operates software for trading cryptocurrencies. This system can be fully integrated into a bank’s infrastructure and, in combination with safekeeping, custody and risk management, enables professional trading in the same way that market participants are accustomed to for all other financial products. As with currencies, equities and derivatives, financial institutions can trade and hold this new asset class for their end customers and for their own business.

This also includes order and execution management, but also orchestration with the risk management and treasury of the respective bank. At a recent event in Frankfurt, Flury mentioned that talks are currently underway with a handful of banks across Europe about future connections to the crypto world. If this assessment proves correct, millions of end customers will sooner or later have secure access to purchase Bitcoin via their bank. Initial experience from the retail sector has shown that 10 to 15 percent of end customers are crypto-savvy. Bitcoin & Co. are thus losing their fear. In Europe, investors no longer have to resort to unregulated platforms on the internet such as the bankrupt FTX.

New investors for the crypto market

This steadily growing acceptance of cryptoassets by traditional banks has been triggered by the realization that good money can be made with trading fees for digital currencies. This is because they are definitely higher than for other asset classes. If this customer potential is tapped and secure and simple bank-regulated access is created for private investors via their bank, this could mean further price potential for digital assets and especially for Bitcoin.

The US authorities are still critical of cryptocurrencies

This banking trend in Europe is also supported by the launch of the EU’s Market in Crypto Assets (MiCA) regulation. The MiCA regulations provide the necessary legal certainty in terms of consumer and investor protection, which is essential for banks. This has given Europe a regulatory edge over the USA. The US, on the other hand, is still struggling with how to classify the issue of cryptoassets in regulatory terms. Legislators there still seem to be in shock from the bankruptcies, bad luck and mishaps of last winter. The SEC there is considered to be extremely critical of crypto anyway.

Bitcoin: Will halving provide the next push?

In addition to the wait for ETF approval in the USA and the aforementioned increasing acceptance and integration of digital assets into the traditional banking system through clear regulation, there is another reason for investors to turn their attention to Bitcoin. A so-called halving takes place at regular intervals. Based on Bitcoin’s hard-coded algorithm, the reward for miners who virtually mine Bitcoin with their computing power is automatically halved. The next halving of these rewards is scheduled for April 2024. So far, all three previous halvings have seen very significant positive swings of between 9,589% and 724% at the following high. This is a logical reaction on the part of the miners: as they only receive half as much for “mining” in US dollars, it makes economic sense for them to hold back the newly mined Bitcoin until the value continues to rise. The higher the demand that then meets a dwindling supply, the stronger the price movement could be. So far, at least, this speculation has paid off.

Is the perfect storm coming for Bitcoin?

Of course, no one can predict whether the swings will be just as huge this time. What is different this time, however, is the enormous increase in acceptance of Bitcoin. The dirty toy of a few computer nerds has become a recognized asset class that more and more investors are taking into account in their investment strategy. Is the perfect price storm brewing for Bitcoin if even more investors can now trade Bitcoin more easily via their bank? And is this potential additional demand now coinciding with the upcoming Halving? We will see what the coming months bring before and after this date.

Please note: Investments in the capital markets are associated with a high level of risk. Investors can lose all of their capital – and more. Remember to do your own due diligence! The content of this website is intended exclusively for readers who are permanent residents of Germany. The German disclaimer applies (see below).

You might also be interested in…

• Uranium Energy: Profit from the rising Uranium Price?
• Is Couer Mining a buy after 80% drop in share price?
• TUI: End of the Short attacks?
• Pan American Silver: Already on special offer?
• PNE Wind: A second chance for investors?
• Nvidia: Demolished expectations!
• Apple: Buy the dip?
• Artemis Gold: This share travels under the Radar!
• Exasol: Still waiting for the turnaround!
• Redcare Pharmacy shows strong growth!
• Covestro: Adnoc increases takeover bid!
• Royal Helium: Noble Gases for the Space Industry!
• Marathon Gold: The next gold mine in Newfoundland!
• Ranking: The most innovative Companies in the World
• Tourmaline Oil: Betting on a higher natural gas price
• Banyan Gold: New Gold rush in the Yukon!
• DHT Holdings: Tankers as cash machine!
• Ranking: The largest Copper-Mines in the World!
• Xortx Therapeutics: Now it’s time for the final spurt!
• Delignit: Back on track!
• Beaconsmind: Digital solutions for store-based business
• Nippon Sanso: Moat und catch-up potential
• Ero Copper: A copper producer that hardly anyone knows
• Obsidian Energy: The big One among the smaller Oil-Producers
• Ranking: Best selling Gaming consoles in the World!
• Net Digital: A German payment service provider with AI!

Graphics: Das Investor Magazin, Pixabay

_____________________________________________________________________________________

DISCLAIMER. BITTE UNBEDINGT BEACHTEN!

Grundsätzlicher Hinweis auf mögliche Interessenskonflikte gemäß Paragraph 34 WpHG i.V.m. FinAnV: Mitarbeiter, Berater und freie Redakteure von www.investor-magazin.de  können jederzeit Aktien an allen vorgestellten Unternehmen halten, kaufen oder verkaufen. Das gilt ebenso für abgeleitete Finanzinstrumente.  Sollte dies der Fall sein, wird dies an dieser Stelle genannt.
Zudem weisen wir gerne auf die Broschüren der BaFin zum Schutz vor unseriösen Angeboten hin:
– Geldanlage – Wie Sie unseriöse Anbieter erkennen (pdf/113 KB)
– Wertpapiergeschäfte – Was Sie als Anleger beachten sollten (pdf/326 KB)
Risikohinweis: Wir weisen darauf hin, dass der Erwerb von Wertpapieren jeglicher Art hohe Risiken birgt, die zum Totalverlust des eingesetzten Kapitals führen können – oder darüber hinaus. Jegliche auf dieser Webseite verbreiteten Artikel rufen explizit nicht zum Kauf oder Verkauf von Wertpapieren auf. Es kommt weder eine Anlageberatung noch ein Anlagevermittlungsvertrag mit dem Leser zustande. Die hier dargestellten Informationen beziehen sich auf das Unternehmen und nicht auf die persönliche Situation des Lesers. Grundsätzlich möchten wir Ihnen Ideen für unseres Erachtens aussichtsreiche Investments geben. Bitte passen Sie diese dann an Ihre individuelle Strategie und persönliche Finanzsituation an. Und bitte vergessen Sie nicht: Wir haben keine Glaskugel, wir haben aber viel Erfahrung und Wissen. Daher raten wir stets dazu, dass Sie als Leser ihre eigenen Analysen vornehmen. Do your own Due Dilligence!
Datenschutz: Wir geben Ihre Daten nicht an externe Dritte weiter. Aufgrund der neuen Datenschutz Grundverordnung haben wir unsere Datenschutzerklärung aktualisiert. Sie können sich für unseren kostenlosen Newsletter hier anmelden. Eine Abmeldung ist jederzeit per Mail an info (at) investor-magazin.de möglich.
Keine Haftung für Links: Mit Urteil vom 12.Mai 1998 hat das Landgericht Hamburg entschieden, dass man durch die Ausbringung eines Links die Inhalte der verlinkten Seiten ggf. mit zu verantworten hat. Dies kann nur dadurch verhindert werden, dass man sich ausdrücklich von diesem Inhalt distanziert. Für alle Links auf dieser Webseite gilt: Der Betreiber distanziert sich hiermit ausdrücklich von allen Inhalten aller verlinkten Seiten und macht sich diese Inhalte nicht zu Eigen.
Keine Finanzanalyse: Der Herausgeber weist ausdrücklich darauf hin, dass es sich bei den Besprechungen um keine Finanzanalysen nach deutschem Kapitalmarktrecht handelt, sondern um journalistische und/oder werbliche Texte. Sie erfüllen deshalb nicht die Anforderungen zur Gewährleistung der Objektivität von Anlageempfehlungen. Bitte beachten Sie außerdem: Die Nutzung dieses Informationsangebots ist ausschließlich natürlichen Personen vorbehalten, die ihren dauerhaften Wohnsitz in der Bundesrepublik Deutschland haben. Allen anderen natürlichen oder juristischen Personen oder Personengruppen ist die Nutzung wie auch der Zugang zu dieser Webseite nicht gestattet.
Urheberrecht: Der Inhalt und die Struktur dieser Webseite sind urheberrechtlich geschützt und Eigentum des Betreibers. Sie dürfen nicht ohne vorherige schriftliche Zustimmung weder verwendet noch reproduziert werden, auch nicht auszugsweise. Der Betreiber ist bestrebt, in allen seinen Publikationen die Urheberrechte der verwendeten Grafiken, Bilder und Texte zu beachten. Allein aufgrund der bloßen Nennung oder Nichtnennung von Rechten Dritter ist nicht der Schluss zu ziehen, dass diese nicht geschützt sind! Sollte der Betreiber dennoch gegen Rechte Dritter verstoßen haben, wird er unter dem Vorbehalt der Prüfung unverzüglich jegliche Dateien entfernen, sofern er auf die Rechtsverletzung schriftlich hingewiesen wurde.

Drucken oder per E-Mail weiterleiten