× #message#


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


CME Group plans to launch Bitcoin trading

The world of cryptocurrency and digital assets is continuing to expand, crypto adoption is rising, and its integration into real-world applications such as payment processes is increasingly prevalent. Whilst many crypto natives would prefer these digital currencies to remain as decentralized as possible, major financial institutions are making significant efforts to integrate cryptocurrencies into their portfolios. One such example is CME Group, the world's largest futures exchange, which ha
Read more

Why ETFs are a great way to get into crypto

ETFs are a great way to get into crypto for traditional investors. For many crypto first-timers, the ins and outs of exchanges, wallets, and market movements can be overwhelming. Luckily, as of 2024, US investors can now look forward to adding two kinds of spot crypto ETFs to their portfolio. In January, the Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs, followed in May by a rule change approved by the SEC allowing Ethereum ETFs to be listed on a series of US exchanges,
Read more

What does the Ethereum ETF approval mean for traders?

On the 23rd of May 2024, the US Securities and Exchange Commission’s (SEC) the Ethereum ETF approval to the expectant public. While the market had ample time to prepare for the launch of the first set of Bitcoin ETFs, the approval of a rule change affecting their Ethereum counterparts came as somewhat of a surprise. Nevertheless, the ETFs will not be listed immediately, given that each product needs to be approved individually by the SEC. This window will give traders time to redistribute
Read more

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


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


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 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


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

Read more


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


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