Bitcoin just hit a new All Time High

#Bitcoin just hit a new All Time High and the reasons for this are very different this time! 🚀 Here's why:

1 - The reasons for this ATH are very different to those in 2021. The types of investors choosing digital assets now are far more varied. Institutional investors from the US have invested tens of billion dollars into BTC ETFs, which have only been available since January, a massive, steady, reliable long-term inflow of capital into the crypto market which is a huge support for the demand side.

2 - Healthy growth is the new norm for digital assets. We are most probably going to steadily break new highs, and likely see less volatility as we do so. Reasons for this are the mentioned steady capital inflow from the institutional side but also more and more retail investors, who are benefiting from the current market and start to invest. An observation from our own data is that we have never had a month in Bitpanda history with net capital outflows. New investments have always exceeded withdrawals. Investors did not sell off their digital assets even in the biggest crypto winter, but held them instead. Both will lead to healthy growth.

3 - Less volatility, regulation and long-term oriented investors are going to drive a new industry culture. A more progressive legal framework, such as that created by the MiCA, will lead to an improvement in the quality of the industry and in particular the players active in it, such as brokers and stock exchanges, and will weed out the black sheep. Which is necessary for an industry of this size. Crypto isn’t a niche asset anymore, it is a central part of the financial industry and the wider economy. Bitcoin currently ranks 9th in the top assets by market cap, just behind Silver and Alphabet. That is significant and no professional player can avoid crypto, or its potential, any longer.

4. Crypto is nowadays very connected to the "classic" financial markets. The current macro-economic outlook is very positive. That has not only a positive effect on the stock markets, but also on crypto. Institutionals and retail are starting to invest again.

All in all after two hard and dry years, it can be said that for 2024, there are many different positive signs that are giving the crypto market a tailwind and I am very much looking ahead about what's to come.