The price of bitcoin has started to rise sharply in recent weeks. However, caution remains in order for the coming months. Decryption.
After reaching almost 70,000 dollars at the end of 2021, before plunging to almost 15,000 dollars, a year later, bitcoin has continued to regain ground since then, now exceeding the symbolic threshold of 60,000 dollars, a stone’s throw from its absolute record.
An asset that remains very speculative
Given its strong variations, it is clear that the best-known crypto-currencies are reserved for the most reckless savers, capable of keeping a cool head in all circumstances and accepting to lose all or part of their capital. However, despite its high volatility, bitcoin has recently regained favor with investors, after its price plunged in 2022.
A new wind of euphoria
It must be said that the recent arrival of several trackers (or ETFs); funds listed on the stock exchange, such as stocks, replicating in real time the performance of bitcoin, has rekindled investors’ enthusiasm for the most famous of cryptocurrencies. Indeed, in January 2024, the American stock exchange authorities authorized the launch of several ETFs indexed to the price of bitcoin.
As specified in a note published by Melanion Capital, these trackers have experienced a massive influx of purchases, with Blackrock and Fidelity having, for example, collected more than $3 billion in assets under management in less than a month, making them the two of the most successful ETF launches in history.
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What about next?
However, since these launches, the prices of the digital currency have tended to stabilize at high levels. Nevertheless, according to Alexandre Baradez, head of market analysis at IG France, the medium-term upside potential of bitcoin still seems very present even if, in the short term, many factors seem to us to already be integrated into prices and could therefore lead to a consolidation phenomenon.
Another positive element: in spring 2024, bitcoin will be the subject of an operation which will lead to its production rate being halved, which should support prices by creating a phenomenon of scarcity. Despite everything, detractors of crypto-assets continue to believe that the enthusiasm around bitcoin is not based on anything tangible. This is particularly the case of the European Central Bank (ECB) which recently published a post entitled Bitcoin’s last battle, in which it believes that bitcoin will soon take the path to insignificance.
How to invest in bitcoin
It must be said that the last few years have been particularly tumultuous for the sector, such as the collapse in the price of the digital currency Terra Luna and the FTX affair. Nevertheless, the arrival of ETFs should make investing in bitcoin more accessible and secure, even if to trade them, you must have a securities account allowing access to the American stock markets.
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In addition, these financial products allow individuals to gain exposure to digital currency at lower costs. Indeed, direct investment in bitcoin often results in significant transaction fees on exchange platforms, which can accumulate significantly over time, with the frequency of transactions.
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