Apr 23 2024: Bitcoin surged to new price records in 2024, buoyed by the recent halving event that halved the issuance of the leading cryptocurrency over the weekend. Additionally, the approval of a bitcoin spot ETF by the Securities Exchange Commission (SEC) confirmed Bitcoin’s status as a store of value.
Thales Freitas, CEO of Mexican exchange Bitso, shared these insights during a discussion with Investing.com Brasil at the Web Summit Rio. He discussed Bitcoin’s historical trajectory before the halving, noting changes in this year’s market dynamics and offering perspectives on the ongoing bull cycle.
Here are excerpts from the conversation with market analysis by Bitso’s CEO:
Investing.com: Bitcoin’s price has been consolidating between $65,000 and $70,000 post the launch of bitcoin spot ETFs and the halving. What’s your outlook for the market in the next six months?
Thales Freitas: Historically, there’s a significant rally before a halving, followed by a correction tied to U.S. interest rates dictating market liquidity.
After a halving, there’s typically a sell-off, as seen recently. However, Bitcoin’s scarcity remains a strong factor, especially amidst growing U.S. debt concerns, making me bullish on Bitcoin.
Investing.com: Do you believe Bitcoin will continue to be a store of value despite its price being influenced by market liquidity conditions?
Thales Freitas: Bitcoin’s association with “digital gold” has been tested, notably during the Covid-19 outbreak and its aftermath, linked to interest rates.
However, with more institutional involvement and decreasing Bitcoin supply, volatility should decrease significantly. It’ll remain volatile for years but become a less volatile asset for future generations, akin to gold’s role during inflationary periods.
Investing.com: Could Bitcoin be likened to owning property in a high-value area?
Thales Freitas: Yes, particularly in regions valuing private property, where property demolition for reconstruction is common.
The SEC’s ETF approval validated Bitcoin’s long-term asset thesis.
Investing.com: Historically, altcoin season follows Bitcoin rallies. Will it repeat, especially with altcoins evolving beyond payments and tokenization?
Thales Freitas: My portfolio mostly consists of Bitcoin, with occasional altcoin investments for innovative projects. Altcoins have seen mixed performance in this rally, with some disappointments but also opportunities.
While past cycles saw bitcoin, altcoins, memecoins, and NFTs rise sequentially, this cycle saw a reversal. Bitcoin, memecoins, and select NFTs surged, leaving altcoins somewhat behind.
Established projects will thrive, but some may fade due to limited space. Bitcoin remains a reference asset alongside select others in a portfolio.
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