Bitcoin has been dealing with a lot of uncertainty during the second and third quarters of 2024, but the general market sentiment remained positive. The most recent Bitcoin price chart shows that investors weren’t wrong to remain optimistic, as BTC just rallied considerably, reaching $99K. During times like this, it is more difficult to determine the direction the marketplace will take, an already challenging task to perform in a market known for its volatility and fluctuations. As a result, investors are likely to have an even harder time coming up with comprehensive strategies that can ensure profitability.
As always, your best bet is to do your research so that you can learn more about the latest developments in the marketplace, as well as have a look at historical data patterns. You mustn’t let yourself be swayed by the fear of missing out since it will most definitely do you much more harm than good and cause you to lose large amounts of capital for nothing.
Crypto spending
Bitcoin was originally designed to have the same properties and use cases as fiat currencies, only in digital format. However, that plan didn’t become a reality, and right now, Bitcoin is considered more of a store of value than anything else. This is precisely why so many investors are bringing Bitcoin to their portfolios since the king of crypto helps with both asset diversification and value retention. However, there has been a lot of discourse within the community regarding the ability to spend cryptocurrencies the same way as other coins.
A service that allows this to happen could be one of the first steps Bitcoin takes into the mainstream, attracting a growing number of potential investors that will bring more engagement on the blockchain. Recently, Mastercard has joined forces with a global payments ecosystem known for building and harmonizing solutions that can host both crypto and traditional currencies. Analysts have long debated the possibility of connecting these two financial worlds, and while naysayers definitely do exist, the number of those who believe both ecosystems would have a lot to gain from the interaction is much larger.
Mastercard decided to expand support for non-custodial crypto wallets and enable a new euro-denominated debit card that will allow users to spend Bitcoin at more than 100 million merchants that are part of the Mastercard network.
Self-custody
Self-custody is a fundamental concept of the crypto environment. It refers to storing assets in a manner that doesn’t depend on the use of a centralized platform or institution, such as a bank. This is one of the key features that attracted investors to this ecosystem in the first place since many are drawn by the anonymity the blockchain is able to offer, as well as the inherent security associated with it. Unlike custodial wallets, the self-custodial variety needs the user to take full responsibility for their funds.
You become the only owner of the private key that lets you access the wallet and your funds. As a result, losing or forgetting this password means that you won’t be able to access your capital. Sharing the code with anyone else can also be a security risk since many crypto investors fall prey to scams in which malicious individuals manage to earn their trust and extract this information from them. Afterward, their accounts would be left entirely drained.
So, why does an established credit card company want to work with custodial wallets? The general consensus is that traditional and digital finance have nothing to do with one another and that blending them together cannot end well. However, some analysts consider the movement to be perfectly natural and the logical progression Bitcoin was bound to make toward becoming a payment option. The fact that cryptocurrencies are slowly entering the mainstream is also essential to remember. While they are still relatively new assets, they have been considered a niche class for the majority of time.
The technology surrounding cryptocurrencies can indeed be quite intimidating for those who are not familiar with it. According to a social media post made by the company, the project will enable users to spend their coins while also addressing the complexities that come with buying and selling cyber coins through the means of a centralized exchange.
ETFs
Exchange-traded funds have been widely discussed ever since before their launch. The reason for the hype surrounding them is their potential to drive significant price action. In Bitcoin’s case, the predictions came true, and the coin managed to beat its previous all-time high. The reason for the price rally is the potential ETFs have to bring more investors to the ecosystem, something that will drive engagement levels and naturally result in a marketplace that is more active. But compared to their United States counterparts, the Hong Kong bitcoin ETFs had a much slower start.
During the last week of August, the three spot exchange-traded funds based on Bitcoin in Hong Kong had net inflows of around 247 BTC, meaning that the total holdings are currently around $4,450 BTC. That brings the total AUM for the ETFs and HK $2.1 billion, or $269 million. The gains are excellent news for the ecosystem, given that the Hong Kong assets underperformed significantly compared to their counterparts in the United States. During the launch on April 30th, they attracted $262 million in inflows during the first seven days. However, a majority of that number was subscribed before the listings went live.
As such, the actual asset inflows were a much smaller $14 million. This is a sizable contrast when compared to the billions that went into the US Bitcoin ETFs when they were launched in January. Hong Kong has been looking forward to establishing itself as a global hub for crypto investments and trading, and these events have been a setback, showing that the market still has some catching up to do.
When you’re an investor, you need to find the best ways to establish your strategy. Do your research and keep your goals in mind, as these are the main factors that should influence your decisions.
