The FOMO stage for Bitcoin has begun as it reaches the breakout point of $50,000 after a wait of two years! The ETF launch has contributed to the bull market of Bitcoin after its launch spot that took place on January 11. The billion-dollar trade of ETFs took place in the first week of its trading, drawing away the attention of Grayscale Bitcoin Trust (GTBC) declining the value of GTBC to as low as $38,500. 

The BTC value has tripled since last year, after a plunge of 64% in 2022. However, it remains low from the all-time high of 69,000 achieved in November 2021, following its intense speculations. 

The speculations going around BTC a decade ago have become the main point of attraction for people. BTC was introduced as an alternative to the traditional investment options. The scenario changed after the acceptance of spot Bitcoin Exchange Trade Funds by the US government. This has increased the optimistic approach and a widespread acceptance from investors globally!

Matt Maley, Strategist at Miller Tabak Co., said, “This asset has a lot of potential to grow further. There is a momentum of speculations going around this asset that can be seen shortly.”

This speculation in BTC benefited both investors and crypto-related companies greatly. Trading platform Coinbase Global Inc. witnessed a growth of 3.8%. Furthermore, the crypto miner firm, Marathon Digital Holdings Inc., saw a massive increase of 14.2%. 

Navigating the Perils: Risks and Challenges in Bitcoin’s Continued Expansion

Bitcoin has been gaining momentum in the market, and it has finally recovered all the losses that it has suffered since May 2022. Moreover, it is expected to grow even further. However, there are a few potential risks associated with the crypto prices. The co-founder of Binance exchange, Chagpeng Zhao, is currently amid speculations regarding money laundering, and Sam Bankman-Fried has been convicted of fraud.

According to a report, the upcoming round of bitcoin halving is different from previous ones and may not have an entirely negative impact on bitcoin miners. The report suggests that while the reduction in block rewards may pose a challenge, promising use cases are emerging from the growing roles of ordinal inscriptions and Layer 2 projects within the Bitcoin ecosystem.

Bitcoin ordinals provide additional information to the serial numbers of each satoshi, which is the smallest bitcoin unit, and the extra data is called an inscription. Layer 2 projects aim to enhance the throughput, or processing speed, of any cryptocurrency blockchain network.