When the crypto industry was in the thick of the last crypto winter, there was uncertainty about whether or not Bitcoin would ever recover. After all, the crypto winter came around the same time that FTX and Terra collapsed and the situation seemed dire.
Fast forward to 2024 and not only has Bitcoin recovered from its slump but it has scored two major wins within months of each other. First, there was the approval of the spot Bitcoin ETF that had been pursued for years. Now, Bitcoin has crossed the $72,000 price mark, marking a new all-time price high.
This has naturally led to celebration throughout the industry and could signal even greater things to come.
The Lead-Up to the New Peak
The most recent crypto winter lasted for roughly 2 years and saw major companies scrap projects and let go of staff. It also gave crypto critics ammunition to discredit the industry. However, several events contributed to the industry coming out of this slump. First, there was the spot Bitcoin ETF.
Companies in the crypto space had been applying for spot Bitcoin ETFs for years and all had been denied. But by the second half of 2023, it seemed like approval was imminent. With this, investors began stocking up on the token, driving up its price. On top of this, the next Bitcoin halving was less than a year away.
The halving, which cut the rewards per block in half, has usually correlated with an increase in the Bitcoin price and this time was no different. Once 2024 rolled around and 11 spot Bitcoin ETFs were approved, the price of Bitcoin continued to rise steadily, giving way to the long-awaited bull run.
Now, the token can boast of a new all-time high and this has massive implications not just for Bitcoin alone but for the industry at large.
What This Means For the Industry
Bitcoin’s new price high has several implications for the industry at large. First, it means that more people will invest in cryptocurrency. We’ve seen this pattern before; when Bitcoin is doing well, the media reports on it and more people enter the market seeking out either Bitcoin itself or a new crypto currency. This influx of new investors will benefit the prices of several tokens and the industry overall.
This new all-time price high will also redouble efforts to secure spot ETFs for other tokens in the market. There has been some talk of Ether getting its own spot ETF at some point and the optimism fueled by the new Bitcoin price high can only help.
Then there is the effect that this will have on businesses within the industry. One thing that is consistent during bear runs is crypto businesses shutting down projects and firing staff. This new bull run could see more companies in the space hire new staff and launch new projects. Blockchain-based sub-sectors like GameFi, DeFi, and others could also see a boost during this time of prosperity.
Finally, this new all-time price high further heightens our expectations of what crypto can achieve. We now know that Bitcoin can cross $72,000 per token which means that $100,000 isn’t so farfetched. Moving forward, our expectations and hopes for Bitcoin and other tokens have been permanently increased.
Conclusion
The new Bitcoin all-time price high is more than just a win for Bitcoin itself. It means more visibility for the industry, a chance for other tokens to secure spot ETFs, and expands our idea of what cryptocurrencies, Bitcoin or otherwise, can achieve.
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Saqib Iqbal
