TECH - Bitcoin: The Road to $100k | Benzinga
Bitcoin (CRYPTO: BTC), the world's first and largest cryptocurrency, has outpaced every other asset class – by a lot. Bitcoin is up a mind-boggling 17,355.7% while the S&P 500 Index ETF (ARCA:SPY) is up 223.3%. Though the run may seem long in the tooth to amateur investors, the data points to much higher prices.
Bitcoin's Supply & Demand: The Perfect Storm
The Halving (Supply)
Earlier this year, the highly-anticipated Bitcoin halving event occurred. This is built into Bitcoin's monetary policy, increasing scarcity (supply) by reducing the number of new Bitcoin entering the market and reducing the reward for Bitcoin miners like Riot Platforms (NASDAQ: RIOT) and Marathon Digital (NASDAQ: MARA). Historically, Bitcoin investors reap rewards post halving. Halving events occurred in November 2012, July 2016, and May 2020. One year later, Bitcoin's price more than doubled each time (and much more).
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Bitcoin ETFs Spur Demand
While supply will be more constrained, demand for Bitcoin is near-insatiable after the launch of several spot Bitcoin ETFs in the U.S. BlackRock (NYSE: BLK), the ...