Maybe now we can say it. Bitcoin may have become a structural financial asset. Not solid, being highly speculative by nature, but nevertheless a product that investors continue to choose. It remains to be seen whether its market will shrink and become only an area for specialists. In any case, the best-known cryptocurrency has resisted all the major drops, both that of 2018 and that of 2022 after the failure of the FTX exchange platform, and in recent days it has reached the value of 32,000 euros .
Will it exceed 32,000 euros? Insiders are wary, however it will depend on the decisions the Fed takes on November 1st and on other macroeconomic indicators, including the dollar exchange rate. As well as the implications with the SEC, the authority that regulates the stock market in the United States.
There is also the flip side of the coin, given that in recent months, an increase in withdrawals of bitcoins priced in dollars has been observed on the platforms. That is, there are much more people who, instead of continuing to deposit, decide to exit the investment. Currently, withdrawals have exceeded deposits , as the Glassmode tracker shows. This does not mean that the exchanges are on the verge of bankruptcy , given that the balance of the platforms is estimated at 2,024 million bitcoins, but the market is certainly giving clear signals and another symptomatic aspect is the lack of new entries into the market, thus creating a greater concentration of bitcoin in the hands of historic investors.
There are 425 million people who hold bitcoin or another cryptocurrency. But those who own at least $1 million in cryptocurrencies are only counted in 40,000 units, less than 1% of total investors. In short, it does not appear that cryptocurrency has become the real alternative to traditional finance, nor is it clear whether it can constitute a safe haven asset like gold or silver. As said at the beginning, however, bitcoin is certainly not dead and will not die any time soon. Indeed, it could draw new life if the SEC were to approve the creation of an ETF (a type of fund) linked to it . And rumors are already circulating regarding the symbol of this asset which has apparently been viewed.
Bad or good? Neither. Cryptocurrencies are regulated and everyone can evaluate for themselves whether they are right for them. A risk investment that is not suitable for everyone, this does not mean it should be demonized. However, we understand well what we are talking about. One who explained it well, with his usual frank clarity, is the most famous investor in the world, Warren Buffet , who in the past observed: «If you owned all the bitcoins in circulation in the world and offered them to me at 25 dollars, I wouldn’t buy them. Because I wouldn’t know what to do with it. The price of bitcoin depends on whether the next one pays more than the previous one.”