The Present Situation of Bitcoin

Bitcoin is on the verge of doing the unthinkable—achieving nation-state adoption and causing the FOMO of game theory to go into full throttle. With that said, the mood in the market currently couldn’t be further from this reality.

Many wondering if prices in this market will ever recover. The lack of price action has shaken investors’ conviction to such a point that many have either lost interest or even left the Bitcoin market altogether.

Leaving everyone with the same lingering question.

Where will Bitcoin go from here?

The Last Year

To know what Bitcoin’s future is, we must first look at its past. Specifically the last year in the Bitcoin market.

It’s almost unfathomable how the entire Bitcoin and crypto market has flipped within the last year. This time last year, the market was still fresh off of the FTX fraud that left many wondering if the death blow had finally been dealt to this market.

If that wasn’t enough, soon after the FTX fraud, the US government seemed to pivot and make crypto enemy number one. With the likes of Elizabeth Warren and Gary Gensler seeming to attack this industry on a daily basis.

The term “chokepoint 2.0" came into prominence and was a clear display of the US government’s play to push crypto outside of the US. This was the moment when the mood of the crypto market had hit rock bottom. Investors who had previously had unshakable conviction in this market suddenly had severe doubts.

However, everything would change with one announcement.

BlackRock & SPOT ETFs

The moment BlackRock announced its application for a spot BTC ETF.

BlackRock is the largest asset fund manager in the world, and it isn’t even close. Many experts have declared that not only is BlackRock the most powerful company in the world, but it is also controlling everything from behind the scenes. What BlackRock wants, it gets.

In years past, Larry Fink (BlackRock’s CEO) had been strongly against Bitcoin. Yet in what seemed like an instant, he pivoted BlackRock strongly into Bitcoin. Becoming one of the strongest proponents of the cryptocurrency.

This was the announcement that sent shockwaves across the world. When BlackRock does something, everyone is paying attention. What did BlackRock know that everyone else didn’t?

Either way, it was BlackRock publicly coming out in support of Bitcoin that changed the momentum enough that the SEC finally relented and allowed the spot BTC ETF. Something after 10 years of constantly being rejected, many were wondering if it would ever be accepted.

The BTC spot ETF in the US changed everything. Causing the price of Bitcoin to soar to new all-time highs before the BTC halving even occurred. All price predictions for the next cycle could now be thrown out the window. Anything is possible.

The BTC Halving

The BTC halving took place during April 2024, cutting the issuance of newly created Bitcoin being produced every block from 6.25 BTC to 3.125 BTC.

Traditionally, the BTC halving has been the catalyst that ignites each bull cycle. There is no reason to expect otherwise this time as well.

When each Bitcoin halving approaches, many are left disappointed with the anticlimactic event. A lot of buildup with no instant result.

Instead, the BTC halving is playing the long game and is simply a game of supply and demand. As time goes on, the demand for BTC remains steady or even begins to increase while the new supply has been cut in half. Eventually, there will be a supply shock. This has occurred every cycle nearly six to nine months after the BTC halving has occurred.

We are just beginning to enter that timeframe. Things are about to become bullish.

The Future

Nation-State Adoption

Over the last few months, it has become clear that Bitcoin's next trajectory is heading toward nation-state adoption.

In 2021 El Salvador announced that they were making Bitcoin legal tender, but that was just the beginning. Love him or hate him, in July Donald Trump announced that if elected president, he would start a Bitcoin national reserve for the United States.

If that were to take place, the amount of FOMO from not only retail investors but also actual countries into Bitcoin would be enormous. At that point, it would become a game of musical chairs. Countries wouldn't want to be the last one standing without having any Bitcoin.

It is important to take all of this with a grain of salt. There is no guarantee that Trump will be elected, and there is no guarantee that he will follow through on his promise. However, if all of it comes to fruition, you are nowhere near bullish enough for how high Bitcoin's price will go.

Bitcoin Development is Back

While the BTC ETF finally being approved and Trump announcing his Bitcoin plan were exciting, they weren't what made me the most bullish about Bitcoin's future.

The biggest development during the last 2 years and going forward is that Bitcoin development is back.

With the introduction of Bitcoin NFT Ordinals, BRC20 tokens, and the list goes on, the excitement has begun to return to Bitcoin. Previously it was taboo to experiment with the main BTC chain, and that caused innovation to come to a halt.

Developers follow the money, and the most money is on BTC. Never forget that Bitcoin is software that can be updated and improved. What may seem impossible today will become possible in the future. Everything that is on other blockchains will come to Bitcoin. DeFi, smart contracts, stablecoins, and even gaming will eventually come to Bitcoin.

We are quickly approaching a future where transactions on Bitcoin through layer 2s will be instant and nearly free. Also, everything done on Solana or Ethereum will be possible on Bitcoin. It is at that moment that the use case for 99% of other blockchains will evaporate. Causing a stampede rush toward Bitcoin.

The Price

The key narrative that you need to be aware of is that everything that OG Bitcoiners predicted is starting to become a reality.

That the US would print incredible amounts of money and become drowned in debt. That Wall Street adoption would come for Bitcoin through the adoption of ETFs. And that nation-state adoption would soon follow suit.

It truly appears that everything is lining up for Bitcoin to do something incredibly special. We have all heard the price predictions of Bitcoin someday reaching prices of $100,000, $200,000, or even $500,000. If those are your long-term price predictions, I would tell you that you're not bullish enough.

We have seen price predictions from ARK Invest and Fidelity declaring that Bitcoin could be worth millions of dollars before 2030. And that is just the beginning.

One thing is for certain: the future for Bitcoin looks incredibly bright. We all don't own enough Bitcoin.

How about you? What is the most important thing for Bitcoin going forward?

If you enjoyed this post, please leave a comment or show your appreciation by giving it some claps 👏🏻.