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Cryptocurrency is changing rapidly. Driven by advancements in blockchain technology, regulation and adoption, the market is looking like it will be changing again.
One of the seminal moments of Q3 2023 was the avalanche of applications for Bitcoin (BTC) spot ETFs (exchange-traded funds) by major asset management firms.
This was fueled by Grayscale Investments’ victory against the SEC in August 2023, which gave the firm a green light for its BTC spot ETF initiatives.
This surge in institutional interest is a sign of mainstream financial acceptance.
The technical upgrades in Ethereum’s ecosystem particularly the upcoming Cancun upgrade promise to redefine how decentralized applications (DApps) operate.
These exciting developments have set the stage for a transformative Q4.
BTC spot ETFs gain regulatory approval
In Q3, the world watched as traditional asset management giants threw their hats into the cryptocurrency ring.
BlackRock led the way with its application for a BTC spot ETF, followed closely by other players like Fidelity, Franklin Templeton, Valkyrie, Bitwise and VanEck.
This was not just a bandwagon effect but a strategic move to embrace an asset class that has proven its ability to stay in the game and stay profitable.
After Grayscale’s win over the SEC, BTC spot ETFs are set to gain regulatory approval.
A Henley and Partners Crypto Wealth Report showed that as of Q3 2023, there are approximately 425 million cryptocurrency holders globally.
Out of these, a little over 88,000 are ‘crypto millionaires,’ and nearly half have invested in BTC.
The coin’s substantial presence in affluent portfolios shows that it is a legitimate asset class that management giants simply cannot ignore.
Forbes Advisor also anticipates a bullish Q4, with BTC projecting an increase of 63.3% on the year-to-date and Ethereum set to increase by 40.2%.
Both BTC and Ethereum are up by 40.9% and 22% respectively as of time of writing.
Bitcoin halving and ‘four-year cycle’ theory
The four-year cycle theory in cryptocurrency was born from Bitcoin’s halving events.
Approximately every four years, Bitcoin’s mining rewards are halved meaning, the number of Bitcoins mined in each new block is reduced by half.
Some groups believe that Bitcoin’s halving event leads to price increases, which in turn affects the entire cryptocurrency market.
While this theory seems to have some degree of accuracy, there…
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