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Even since the price of Bitcoin went into decline last year, the industry has been waiting on bated breath for it to make a recovery. There have been spikes here and there but the world’s most famous token achieved a major breakthrough when it recently crossed the $35,000 mark.
This is significant because this is over double what Bitcoin was worth earlier this year and represents its highest market price for the whole of 2023. But more than this, Bitcoin’s $35,000 price hit has major implications for the industry as a whole.
Other Tokens Following Suit?
As past crypto analyses show, the fortunes of Bitcoin tend to correlate with that of other tokens. When Bitcoin is in decline, others tend to be as well. Now that Bitcoin is recovering, some expect other tokens like Ethereum and Cardano to make gains as well. Should this happen, crypto users will be the biggest beneficiaries.
When crypto winters take place, many investors hold on to their tokens with plans of selling at a later date. An industry-wide recovery means that these patient investors can finally reap their rewards. We also need to consider those who use cryptocurrency for non-investment purposes. Some people use cryptocurrency to pay for goods and services and for entertainment purposes.
A look at the lists of best crypto casinos will show that millions around the world are using cryptocurrency to gamble. As such, a price spike is the best-case scenario for them as they can get double wins. More profit for crypto users will, of course, drive more demand for these tokens which will only increase their market price.
A horde of tokens making gains at the same time as Bitcoin means that the industry as a whole will be on the road to recovery and could end 2023 on a positive note, especially when compared to the state it was in as of late 2022.
Boosted Morale
One of the most obvious benefits of this development is that it offers a morale boost for the rest of the industry. Every time the crypto sector has seen a major price decline, especially if it lasts for a long time, there is a sense of weakened morale among industry stakeholders. This has been especially poignant because of the high-profile collapses we’ve seen in the last year such as FTX and Terra. And, as usual, we have the naysayers predicting that this is the end of Bitcoin and crypto.
But this new price high has injected some morale into the industry. Those who had been waiting patiently for Bitcoin to recover feel some sense of vindication and some even predict that it could cross the milestone again by Christmas. At the end of the day, the crypto industry is very community-driven and this community having a reason to celebrate can only be a positive thing.
It could also produce a loop of sorts; as more people see the price of Bitcoin going up, they might rush to get their hands on their tokens and this, in turn, drives up the price of Bitcoin even further, and so on. It is worth noting that some of the excitement in the industry is because of BlackRock’s Bitcoin spot exchange-traded fund (ETF) application, which seems very promising. For years, many companies in the crypto industry have applied for an ETF but have been denied. BlackRock, however, seems to have a good chance of being approved.
If it is, we will have the first Bitcoin ETF in the United States, and it is predicted to drive even more investments into digital assets. Now, many crypto watchers are looking to the industry possibly making a full recovery and the latest crypto winter being put firmly behind us. And if the ETF comes through, we can look forward to a profitable industry for years to come.
The End of the Winter?
We’ve all been collectively waiting for the current crypto winter to end and this price movement on Bitcoin’s part could be the start of this. The industry has endured several winters in the past and always seemed to come out of it in the end. While we can’t call this a bull run just yet, it does seem to be headed in that direction.
Bitcoin and other tokens like it are making recoveries, there is the chance of the first Bitcoin ETF being approved, and there is an overall sense of optimism among investors. Regardless of what happens moving forward, many crypto lovers are just happy to savor this moment of relief amidst what has been a very trying few months. If all goes well, Bitcoin might just cross the $35,000 mark by Christmas and maybe even surpass its previous all-time high. If the price of Bitcoin dips again, its ever-loyal fanbase will probably wait it out again until Bitcoin comes back, as it always seems to do.
*This article was paid for Cryptonomist did not write the article or test the platform.
Source: https://en.cryptonomist.ch/2023/11/08/bitcoin-35000-what-means-industry/