In 2024, Bitcoin reached $93,000, more than doubling its value from a year ago. However, its current position is no longer about independence from the system but about thriving within it.
Wall Street's Playbook
The financial elite have taken advantage of Bitcoin. BlackRock's Bitcoin spot ETF is amassing billions in assets, and UK pension funds and major asset managers are actively getting involved. Bitcoin has become an asset no longer carrying revolutionary ideas but used by those it was supposed to exclude.
Regulatory Issues
Regulatory bodies still cannot ensure a unified approach to cryptocurrencies, leaving significant oversight gaps. The lack of transparency exacerbates the situation, especially when changes in administration can lead to deregulation. This creates a risk for future crypto market crises.
Rehypothecation: The Invisible Threat
Rehypothecation, where the same Bitcoin is pledged multiple times, increases market risk. This process can create a false sense of oversupply and lower Bitcoin's price, causing liquidity shortages during crises. Small investors remain unaware of the risks associated with this practice.
Changes for Bitcoin in 2024 show its adaptation to market trends, where financial gain often prevails over the spirit of innovation. What lies ahead will depend on who holds the reins of power.
