Over the past year, Bitcoin has strengthened its position in the cryptocurrency market, rising by 124% since September 2023. Despite challenges faced by miners, the leading cryptocurrency now holds 56% of the total market.
Bitcoin’s Continuous Growth
Since September 2023, Bitcoin has outperformed other asset classes, demonstrating resilience against market volatility. According to the VanEck report, Bitcoin has seen a 124% price increase over the past 12 months. Bitcoin’s market capitalization now stands at $1.25 trillion, representing 56% of the overall cryptocurrency market, a 15% increase from the previous year. This growth highlights the increasing trust and adoption of Bitcoin as a store of value.
Bitcoin’s Role as a Store of Value
The VanEck report suggests that Bitcoin’s recent performance is driven not by short-term trends, but by its growing reputation as a store of value. Institutional investors are increasingly seeing Bitcoin as a hedge against inflation and a digital alternative to gold. Increased interest in Bitcoin ETFs and traditional financial institutions also indicates this shift in perception. Analysts expect Bitcoin's long-term bull market to continue, despite short-term fluctuations.
Challenges for Miners and New Problems
Despite market success, the report also highlights challenges faced by Bitcoin miners. Following the April 2024 halving, which reduced block rewards from 6.25 BTC to 3.125 BTC, miner profitability has dropped by 97%. This decrease poses challenges as miners find it harder to cover operational costs. However, miners continue to support the network, as evidenced by the rising hash rate, which reached record levels in 2024.
Despite miner challenges, Bitcoin remains one of the best-performing assets over the past 12 months, growing by 124% since September 2023 and capturing 56% of the total market. VanEck’s forecast suggests that Bitcoin's long-term bull market will persist, supported by institutional investments and its role as a store of value.
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