Positive factors for bitcoin –

MEXICO CITY (EL Universal).— Given the historical highs that the price of bitcoin reached, the industry considers that the cryptocurrency has greater strength and remains among the preferences of users.

According to the Bitso platform, among the factors that have benefited the virtual asset, the approval of the bitcoin exchange-traded fund (ETF) stands out, which injected enthusiasm into the market and validated the intrinsic value of the currency as a solid, comparable asset. with silver and gold.

According to the firm, this instrument also offers a traditional avenue for institutional investors to participate in the growth of bitcoin, thus strengthening the long-term perspective of the asset and the industries that surround it.

Bitso detailed that another factor that has driven the currency is its price cycle, where bitcoin has shown consistent behavior with periods of sustained growth and during which it has reached its historical highs and then leveled off.

“The highest price had been $68,000 in November 2021, which was surpassed yesterday with a value of $72,700. These cycles have always been driven by the halving, which is a pre-scheduled event that occurs every four years, every 210 thousand mined blocks, which is expected to be reached in April.”

“With this event, the bitcoin rewards that miners receive for verifying transactions are reduced by half. “This reduction was designed from the conception of bitcoin with the intention of protecting its value and ensuring its scarcity over time, replicating the limited supply of precious metals like gold,” he said.

In that environment, the company said that the industry is at an exciting time in bitcoin’s history thanks to the halving and its exposure to traditional markets through ETFs. “The halving is important since markets are governed by the behavior of supply and demand and the Bitcoin market, like the gold market, is composed of these forces. There are two types of offers, the secondary offer, made up of bitcoins bought and sold, and the primary offer made up of bitcoins mined and sold, which will be halved around April 18, 2024,” he said.

“This is accompanied by the fact that bitcoin has demonstrated its capacity as a store of value and technology, time and time again in recent years. In recent months we have seen more people and institutions acting in a manner consistent with this reality,” the company said.