When the crypto industry was in the midst of the last crypto winter, there was uncertainty as to whether or not Bitcoin would ever recover. After all, the crypto winter came around the same time that FTKS and Terra collapsed and the situation looked dire.
Fast forward to 2024 and not only has Bitcoin recovered from its slump, but it has scored two big wins within a few months of each other. First, there was the approval of the spot Bitcoin ETF that had been sought for years. Now, Bitcoin has crossed the $72,000 price mark, marking a new all-time high price level.
This naturally led to industry-wide celebration and could signal even greater things to come.
Introduction to the new peak
The last crypto winter lasted roughly 2 years and saw major companies cancel projects and lay off staff. It also gave ammunition to crypto critics to discredit the industry. However, several developments helped the industry emerge from this slump. First, there was the spot Bitcoin ETF.
Companies in the crypto space have been applying for spot Bitcoin ETFs for years and all have been rejected. But by the second half of 2023, approval seemed imminent. With this, investors started hoarding the token, driving up its price. On top of that, the next bitcoin halving was less than a year away.
The halving, which cut the block rewards in half, is usually associated with an increase in the price of Bitcoin and this time was no different. As 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 boasts a new all-time high and this has huge implications not only for Bitcoin, but for the industry as a whole.
What this means for the industry
Bitcoin’s new high price has several implications for the industry as a whole. First, it means more people will invest in cryptocurrencies. We’ve seen this pattern before; when Bitcoin is doing well, the media reports on it and more people enter the market looking for either Bitcoin itself or a new crypto currency. This influx of new investors will benefit the prices of several tokens and the entire industry.
This new all-time high will also redouble efforts to secure spot ETFs for other tokens in the market. There was talk about it Ether is getting its own spot ETF at some point the optimism fueled by the new high price of bitcoin can only help.
Then there is the effect this will have on businesses within the industry. One thing that is consistent throughout the bear run is that crypto companies are shutting down projects and laying off staff. This new bull run could see more companies in the space hire new staff and launch new projects. Blockchain-based sub-sectors such as GameFi, DeFi and others could also see a boost during this time of prosperity.
Finally, this new all-time high further raises our expectations of what crypto can achieve. Now we know that Bitcoin can exceeds $72,000 per token which means that $100,000 is not that excessive. Going forward, our expectations and hopes for Bitcoin and other tokens are permanently elevated.
Conclusion
Bitcoin’s new all-time high is more than a victory for Bitcoin itself. This 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.
