The supply of Bitcoin on exchanges has sharply decreased
The supply of Bitcoin is gradually being acquired and taken away by Wall Street institutions, which means that the number of Bitcoins circulating in the market is becoming less and less, and the supply-demand relationship is becoming more tense.
ETF and higher awareness
Today, Bitcoin ETFs have been listed, and even securities apps in Hong Kong have begun to offer Bitcoin trading. This has allowed more investors to come into contact with and understand Bitcoin, significantly increasing awareness.
The market will continue to rise, with possible minor pullbacks
In the future cryptocurrency market, it may maintain a long-term upward trend like the U.S. stock market, with short-term pullbacks in between, but overall will continue to rise like a 'reservoir' of U.S. dollars.
Unlike previous bull and bear markets
Previous bull markets may have been accompanied by severe volatility, but now with the support of ETFs, the environment has become more stable, and extreme price fluctuations may decrease, making it unlikely to see opportunities for bottom fishing during significant declines.
Retail investors missed the last bull market opportunity
From $15,000 to the current $100,000, 95% of retail investors have not really made money! Retail investors are often wary of price increases, shorting too much, and missing out on rising opportunities.
Financial crises or quantum computers are the only threats
Unless a financial crisis occurs or quantum computers break encryption technology, the price of Bitcoin is very likely to continue rising, and it will not experience the significant bear markets and crashes seen in the past.
The market always moves towards lower resistance
History shows that the market always moves in the direction of less resistance. The market structure of Bitcoin and other mainstream cryptocurrencies has matured, and future upward trends will be more stable.
Most of the Bitcoin has been mined
Currently, 94% of the total Bitcoin has been mined, greatly reducing the likelihood of miners dumping, which provides strong support for price increases.
U.S. capital gains tax and institutional strategies
The U.S. capital gains tax is as high as 45%. After these institutions gain profits from Bitcoin, they will almost never exchange Bitcoin for U.S. dollars. This also means that the supply of circulating Bitcoin will be relatively tight.
Institutional capital ultimately returns to Bitcoin
Although institutions profit from altcoins, this capital will eventually flow back to Bitcoin, and profits from emerging coins like Trump Coin will still support Bitcoin's value.
In the future, unless a financial crisis occurs or quantum computing makes breakthroughs, the cryptocurrency market will no longer experience the alternating bull and bear cycles of the past few years. Significant market downturns are unlikely to occur again, and the cryptocurrency market will enter a more steadily rising phase, similar to the long-term growth trend of the Nasdaq index.
