Here’s why Bitcoin could potentially drop to $35,000, explained in simpler terms than the technical analysis you’ve been seeing:
🔬 Market Cap Insight:
Currently, Bitcoin’s market cap is around $1.2 trillion. For Bitcoin to fall to $35,000, it would require approximately $500 billion to be pulled out of the market, bringing Bitcoin’s market cap down to around $682 billion.
Factors to Consider:
- U.S. Elections Impact:
The next U.S. election is approaching, and Donald Trump has been very bullish on Bitcoin. He spoke positively at a recent Bitcoin conference, discussing how the U.S. government might invest $10 billion into Bitcoin if he wins the election.
- Bitcoin’s Value as a Hedge:
Bitcoin is seen as a store of value and a hedge against inflation. Several countries are already bullish and buying Bitcoin, adding to its demand.
📟 Market Dynamics:
- Limited Supply:
It’s crucial to understand that Bitcoin has a limited supply, capped at 21 million. Plus, regular Bitcoin halvings and lost Bitcoins (those that can never be accessed because owners have lost their wallet keys) further restrict supply.
- Global Adoption:
In 2021, El Salvador made headlines by becoming the first country to adopt Bitcoin as legal tender. The government has purchased large amounts of Bitcoin, seeing it as a way to attract investment, promote financial inclusion, and reduce reliance on the U.S. dollar.
Remember: Bitcoin is unique. It’s not Ethereum (ETH), Litecoin (LTC), Solana (SOL), XRP, or Binance Coin (BNB). Bitcoin stands alone as $BTC.
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