Trade Balance Deposit / Withdrawal Referral FAQ Log InAvatar Create Account
× #message#
×

Warning

Lowered supply following an increased demand for Bitcoin: Traders be aware

As of 5th of March 2024, Bitcoin is nearing its all-time-high of $68,991.85 USD. The increased demand for Bitcoin towards the end of February 2024 led to a surge in value, understood to be the result of several contributing factors, including the recent approval of spot Bitcoin exchange-traded funds (ETFs) in the United States, which has helped consolidate Bitcoin as a mainstream investment. The forthcoming Bitcoin halving event, due in April, is also believed to be driving the recent increased demand for the most popular cryptocurrency on the market. The supply of Bitcoin will evidently diminish following the halving event, meaning that less Bitcoin will enter the market and be available for trading. 

So, how cautious should traders be about the increased demand for Bitcoin? 


To what can the recent increased demand for Bitcoin be attributed?

The recent approval of eleven Bitcoin ETFs in the United States has had a significant impact on Bitcoin's price. The decision helped create a more accessible and less volatile route for investing in Bitcoin, allowing more mainstream investors and traders —well versed in stocks rather than crypto— to gain a share of the market. Since early January, these ETFs have not only seen unprecedented inflows of investment, they also emphasize Bitcoin's growing legitimacy and appeal as part of a diverse portfolio. The increase in institutional interest that has followed has contributed significantly to the surge in demand. Bitcoin is now widely recognized as a store of value, attracting both institutional and retail investors who are interested in holding the digital asset.


Contributing factors leading to a lower supply


The increased demand for Bitcoin has caused its price to soar, inviting even more attention onto the cryptocurrency market, and onto Bitcoin in particular. The impending halving event in April has further intensified anticipation. Bitcoin halving events, also known as “halvenings” occur every four years and essentially “halve” the reward miners receive for processing Bitcoin transactions. In April 2024, the reward is expected to be cut from 6.25 bitcoins to 3.125. The reduction in supply, coupled with the heightened demand from ETFs, is set to create the perfect storm for a potential scarcity of Bitcoin, which may drive prices even higher. 

 

What can traders expect from Bitcoin in 2024?


A recent report suggests that Bitcoin will reach a new record of $88,000 (€82,000) in 2024, before settling around $77,000 by the end of the year. The positive trajectory is supported by the ongoing demand from institutional investors, driven by the spot Bitcoin ETFs and the upcoming halving event. With Bitcoin's finite supply and increasing mainstream acceptance, many crypto natives, experts and analysts believe that the popular cryptocurrency is poised to increase in value even further in the coming months. However, the increased institutional investment in Bitcoin highlights the importance for traders to follow their moves and market sentiment closely. Major sales or withdrawals have the power to significantly shift Bitcoin’s value, potentially causing a ripple effect across the cryptocurrency market. Traders are advised to watch market trends closely and always bear the volatility of the cryptocurrency market. 

For more information or to start trading, visit www.limitlex.com.
 

latest posts

TRADING

Three common mistakes traders make and how to avoid them

Every trader begins hoping they will be the exception; that they will not fall into the trading traps so many first-time and veteran traders are victim to. But, the good news is that these traps are completely avoidable, as they have little to do with market volatility and everything to do with psychology and decision-making. The reality is that profitable trading is not about catching the next price surge. It is about managing risk, maintaining emotional control, and following a well-defined st
Read more
BITCOIN

How much profit would you have if you bought €1,000 of Bitcoin in 2020

If you had invested €1,000 in Bitcoin back in 2020, how much would it be worth today? It’s a question that captures both the excitement and unpredictability of the crypto market. Few assets have endured such wild swings and still managed to deliver outsized long-term returns. Bitcoin’s price over the last five years has reflected every global tension imaginable, from stimulus-driven bull runs to unprecedented regulatory shifts, institutional demand and new crypto-backed products
Read more
CRYPTO

Countries in Europe where crypto investment is booming

As bitcoin hits another all-time high, the world’s eyes are once again fixed on the crypto market. Europe in particular stands out amidst this global surge, given how the European Union’s Markets in Crypto Assets (MiCA) framework has made it one of the world’s most comprehensive regulatory environments for crypto trading and investment. This fresh legal clarity combined with widespread digital literacy and access to robust banking infrastructure, positions Europe as one of the
Read more
✕
BIDS

The bid price is the highest price that a particular buyer is willing to pay for a specific product or service. In the context of financial/crypto markets, it is the value buyers offer for an asset, such as a commodity, security or cryptocurrency.

Read more

ASKS

The asking price is the minimum price that an individual would be willing to sell their asset, or the minimum amount that they want to receive in return for the unit(s) they are parting with.

Read more

MY OPEN ORDERS

Here you can see all of your open orders. To cancel an open order, just click the ‘X’ symbol next to it.

Read more

LIMIT ORDER

Limit order gives you the power to set a specific price at which you would like to buy or sell the desired amount of cryptocurrency.

Read more

MARKET ORDER

A market order is an order type that enables you to buy or sell at the best available market price.

Read more

STOP LOSS LIMIT

A Stop Loss Limit order is designed to limit your loss on a cryptocurrency position. A Stop Loss Limit order can be placed to buy or sell a specific cryptocurrency at your entered price (a limit order) once that cryptocurrency reaches a certain price.

Read more

TAKE PROFIT LIMIT

A take profit limit order is an order put in place by traders to maximize their profits and protect their profits on positions. A take profit limit order allows you (a trader) to set your custom made Buy or Sell order. You have to set two prices - the Trigger Price and the buy/sell Price.

Read more