Before we dive into the exciting world of Bitcoin (BTC), we will briefly introduce the newest segment in our ThunderCore Blog, Thunder Buzz! Thunder Buzz will be where we discuss all the hottest topics and news in the Web3 world while keeping things informative and relevant for deep discussions.

Thunder Buzz will be where we can touch on things that might be relevant to the DeFi landscape that ThunderCore is navigating. This is part of our goal to educate and inform! Users within the Web3 space should stock up on as much information as possible to rise to any occasion. With that in mind, let’s dive right into the first-ever Thunder Buzz article on the Bitcoin hype ahead of 2024.

The Bitcoin Hype

Bitcoin is the first thing that comes to mind when discussing cryptocurrency, Web3, or blockchain, regardless of whether the person has prior knowledge of the space. Everyone has heard of the boom of Bitcoin into stardom, reaching peaks upwards of $70,000, as well as the fall in 2022 that gave rise to the doomsayers shouting “end of the world” for crypto everywhere. 

Bitcoin has a long history, and we won’t be diving too deeply into that, but the gist is that Bitcoin has gained a reputation and influence that can be likened to the crypto version of gold (Though there are still many differences). Anything Bitcoin and Bitcoin-related has the potential to shift the market, and that’s why crypto enjoyers are always watching out for the latest Bitcoin news.

So, what is with all the recent hype?

A recent bull run has Bitcoin surging to around $43,000 despite its low of just below $17,000 at the start of the year. Aside from general market variance, the Bitcoin hype is fostered by two things: the rumors about Spot Bitcoin ETF and the Bitcoin halving set for H1 of 2024. With two pivotal events expected to come or happen during 2024, investors are excited and incapable of separating themselves from all the bullish sentiment. 

So what is the Spot Bitcoin ETF and Bitcoin halving? Why are they significant?

The Hype of Spot Bitcoin ETF

What is a Spot Bitcoin ETF?

Exchange-traded funds (ETFs) are investment products that track a particular index, sector, or product. ETFs work similarly to stocks where they can be purchased or sold regularly, offering a way to invest. Cryptocurrency ETFs expose investors to crypto without having to directly engage in crypto exchanges, offering a fresh new opportunity. 

There are two types of ETFs, futures ETF and spot ETF. Futures ETF bets on an asset’s future price without holding the asset while a spot ETF holds the underlying asset, making it more akin to owning the asset itself. Spot ETF often reflects the price more directly, and the prospect of it being more like owning the asset draws investors in.

Spot Bitcoin ETF works on this basis and will offer users the ability to invest in Bitcoin without needing to dive into crypto exchanges.

Why is Spot Bitcoin ETF Relevant?

Spot Bitcoin ETF will open the world of crypto investment to those not previously invested. The barrier to entry for crypto investment often seems daunting to traditional traders, and this is a way to familiarize these traders while increasing the engagement and prominence of crypto (Bitcoin, to be specific).

This might become a floodgate that leads to other spot ETFs which will go a long way to developing the Web 3, DeFi, and crypto landscape. The first step to mass adoption will be familiarization.

Where is the Hype Coming From?

So, why are we suddenly talking about spot Bitcoin ETFs? Spot BTC ETFs have been in a cycle of being sent for approval by the SEC going a decade back to 2013. The applications were always rejected, but the landscape seems to be shifting in 2023. It all changed when judges ruled in favor of Grayscale in their case against the SEC. The ruling found that it seems unreasonable for futures ETFs to be accepted but not spot ETFs, marking a change in sentiment. This paved the way for the discussion that the SEC should reconsider rejecting spot BTC ETFs, and the SEC ultimately decided not to appeal the ruling. Seeing the shift in the SEC’s position on spot BTC ETFs, BlackRock’s application for their spot BTC ETF became a topic of interest. This, when combined with the high approval rate of BlackRock’s past applications, led to the common sentiment that it’s just a matter of time before the spot ETF passes.

Companies and investors have become incredibly bullish as they prepare for what they think will be the approval of BlackRock’s spot BTC ETF in 2024, and that has become fuel for recent Bitcoin spikes. One thing that has to be noted is that all of this is just predictions and speculations. There aren’t any confirmations on whether the spot ETF will be passed, so everything is still up in the air.

The Hype of Bitcoin Halving

What is a Bitcoin Halving?

Bitcoin halving is a process where the mining reward is cut in half. The purpose behind the halving is to reduce the influx of coins entering the network, serving as a way to maintain value. The process is written so that the halving will occur every 210,000 blocks mined (Around every 4 years), so the timeline lines up with H1 of 2024.

Where is the Hype Coming From?

The expectation is that halving the mining reward, thus reducing the amount of coins entering the network, will cause Bitcoin to be more valuable. This comes partly with the presumption that less supply entering the market will mean the asset will be in more demand, driving the price up. The other half of the equation is that every Bitcoin halving so far was followed by a boost in BTC price. If we were to judge purely on the data we have, it seems likely that the next halving will perform similarly. This is why investors are bullish on Bitcoin as the halving approaches.

Expectations for 2024

Currently, the market is ignited by both the hype behind spot BTC ETF and the Bitcoin halving, as well as the fact that we have been in the so-called “crypto winter” for the past year. People have been anticipating the moment when crypto is in the spotlight again, and these two factors will continue pushing the market.

The expectation is that bullish sentiment will continue for the community as we transition from 2023 to 2024. A rising market is great for investors and businesses alike, but with great potential comes a need for caution. Spot BTC ETFs and the Bitcoin halving will definitely bring changes to the market and the key is to calmly seize all the potentially incredible opportunities on the rise.

Aside from just Bitcoin trends in 2024, the market as a whole is looking to continue rising. This means that old projects will be able to grow and advance while newer ones will introduce new elements and ideas to the Web3 space. It’s an exciting time for crypto enthusiasts everywhere.

About ThunderCore

​​ThunderCore is an EVM-compatible blockchain featuring a breakthrough consensus protocol, PaLa, allowing lightning-fast efficiency. With users in more than 100 countries, this blockchain emphasizes a growing global reach. ThunderCore offers a native currency, TT, and nurtures an innovative ecosystem within the TT Wallet mobile app.

What’s Next?

The end of 2023 is coming! 2023 has been a wonderful year for ThunderCore and ThunderCore Blog, and we certainly think 2024 will be just as great, if not better. Next time, we will look at all that’s happened for ThunderCore in 2023 as we recap the past year’s journey!