The Catalysts of Time
"What History Tells us about the Future of Bitcoin"
September 18, 2024
Blockchain Newsletter
Cyrille de Lange, Natalija Gavrilovic, Muhammad Wasil, Timotej Klinar
Cyrille de Lange, Natalija Gavrilovic, Muhammad Wasil, Timotej Klinar
Cryptocurrency is on the brink of a new chapter. This chapter has the potential to redefine its role in the global financial landscape. Bitcoin, which was once a niche innovation, is now transforming from a “cyberpunk experiment” into a mainstream necessity.
Born out of the 2008 financial crisis, this experiment in cryptography quickly shifted into a financial giant, attracting the attention of both Wall Street titans and everyday investors. But what future catalysts could propel Bitcoin to surpass its previous height records?
Bitcoin’s cyclical nature has defined the entirety of the cryptocurrency market for the last decade. During this time, we have witnessed it overcome both extremes, from an unpredictable explosive rise to $20,000 in 2017, to its dramatic plunge to $3,200.
Each Bitcoin cycle so far was observed as a time that drives innovation, and the world is being introduced to new players, technologies and regulatory frameworks that set the stage for the next wave of incoming growth opportunities.
The excitement around Bitcoin is evident, but what is truly driving this momentum is a combination of powerful catalysts. From highly anticipated ETF approvals and technological advancements, to shifts of macroeconomic conditions, the entirety of the crypto market is preparing for what could be the next major bull run.
Each previous Bitcoin surge has been ignited by similar events. Will 2024 continue this trend, or will market forces keep expectations in check?
"Any sufficiently advanced technology is indistinguishable from magic."
-Antonopoulos, A. M. The Internet of Money, October 7, 2016.
Cryptocurrency is on the brink of a new chapter. This chapter has the potential to redefine its role in the global financial landscape. Bitcoin, which was once a niche innovation, is now transforming from a “cyberpunk experiment” into a mainstream necessity.
Born out of the 2008 financial crisis, this experiment in cryptography quickly shifted into a financial giant, attracting the attention of both Wall Street titans and everyday investors. But what future catalysts could propel Bitcoin to surpass its previous height records?
Bitcoin’s cyclical nature has defined the entirety of the cryptocurrency market for the last decade. During this time, we have witnessed it overcome both extremes, from an unpredictable explosive rise to $20,000 in 2017, to its dramatic plunge to $3,200.
Each Bitcoin cycle so far was observed as a time that drives innovation, and the world is being introduced to new players, technologies and regulatory frameworks that set the stage for the next wave of incoming growth opportunities.
The excitement around Bitcoin is evident, but what is truly driving this momentum is a combination of powerful catalysts. From highly anticipated ETF approvals and technological advancements, to shifts of macroeconomic conditions, the entirety of the crypto market is preparing for what could be the next major bull run.
Each previous Bitcoin surge has been ignited by similar events. Will 2024 continue this trend, or will market forces keep expectations in check?
"Any sufficiently advanced technology is indistinguishable from magic."
-Antonopoulos, A. M. The Internet of Money, October 7, 2016.
Historical Catalysts for Bitcoin Growth
Bitcoin Halving: The Driving Force Behind Every Bullrun
The Bitcoin halving occurs approximately every four years. This happens when the reward for mining new blocks is cut in half. This process plays the main role in Bitcoin’s design, which is intended to maintain its scarcity by limiting total supply of all Bitcoin to 21 million tokens. With reducing the number of new Bitcoins entering circulation, the halving events create an environment where scarcity is highly likely to drive prices upwards.
In the past, each halving event has been followed by significant price surges. This started several of the biggest bull runs seen in the world of crypto.
Historical Catalysts for Bitcoin Growth
Bitcoin Halving: The Driving Force Behind Every Bullrun
The Bitcoin halving occurs approximately every four years. This happens when the reward for mining new blocks is cut in half. This process plays the main role in Bitcoin’s design, which is intended to maintain its scarcity by limiting total supply of all Bitcoin to 21 million tokens. With reducing the number of new Bitcoins entering circulation, the halving events create an environment where scarcity is highly likely to drive prices upwards.
In the past, each halving event has been followed by significant price surges. This started several of the biggest bull runs seen in the world of crypto.
The April 2024 halving led to a supply and demand shock hinting towards positive price movements. Both investors and financial analysts are actively watching for signs of Bitcoin’s next major price surge.
The April 2024 halving led to a supply and demand shock hinting towards positive price movements. Both investors and financial analysts are actively watching for signs of Bitcoin’s next major price surge.
Institutional Adoption: The Billion Dollar Stamp of Approval
If we closely look at recent years, Bitcoin has experienced a very significant rise in institutional interest. For example, MicroStrategy made headlines when they invested billions of dollars into Bitcoin. This action pushed a domino effect and drove companies like Tesla and Square to follow in its footsteps and also invest in Bitcoin. But what caused the biggest impact for Bitcoin’s institutional adoption was with PayPal in 2020. The company made a drastic change in the market when they allowed millions of their daily users to buy, sell and use Bitcoin through their platform, making it a part of their everyday life. All of these events helped to facilitate the process of mass adoption of Bitcoin. The institutional backings allowed its price to reach new all time highs and legitimised it as an investment asset.
In 2024, the approval of the highly anticipated Bitcoin ETF marked a defining moment in the cryptocurrency's history.. After its launch in January, it opened the doors for major institutional capital, similar to the transformative effect that the gold ETFs had on the market after their introduction. BlackRock, one of the biggest asset management firms in the world, backing Bitcoin through an ETF means the future of Bitcoin as a mainstream cryptocurrency investment asset is cemented.
"Bitcoin is going to play a big role in the international financial system."
— Larry Fink, CEO of BlackRock, BlackRock Insights, June 2023.
Institutional Adoption: The Billion Dollar Stamp of Approval
If we closely look at recent years, Bitcoin has experienced a very significant rise in institutional interest. For example, MicroStrategy made headlines when they invested billions of dollars into Bitcoin. This action pushed a domino effect and drove companies like Tesla and Square to follow in its footsteps and also invest in Bitcoin. But what caused the biggest impact for Bitcoin’s institutional adoption was with PayPal in 2020. The company made a drastic change in the market when they allowed millions of their daily users to buy, sell and use Bitcoin through their platform, making it a part of their everyday life. All of these events helped to facilitate the process of mass adoption of Bitcoin. The institutional backings allowed its price to reach new all time highs and legitimised it as an investment asset.
In 2024, the approval of the highly anticipated Bitcoin ETF marked a defining moment in the cryptocurrency's history.. After its launch in January, it opened the doors for major institutional capital, similar to the transformative effect that the gold ETFs had on the market after their introduction. BlackRock, one of the biggest asset management firms in the world, backing Bitcoin through an ETF means the future of Bitcoin as a mainstream cryptocurrency investment asset is cemented.
"Bitcoin is going to play a big role in the international financial system."
— Larry Fink, CEO of BlackRock, BlackRock Insights, June 2023.
Regulatory Advances: Ripple and MiCA
The crypto industry saw a significant development in regulatory advancements when the company Ripple secured a (partial) legal victory against the U.S. Securities and Exchange Commission (SEC) in the courtroom. The ruling stated that XRP tokens which were being sold on secondary crypto markets were not classified as securities, which meant it reduced regulatory concerns and reassured investors in the cryptocurrency market. This ruling signalled that regulatory clarity was within reach, boosting market confidence.
Meanwhile, the European Union (EU) approved the “Markets in Crypto-Assets” - MiCA legislation. This step brought Europe closer to forming a unified and legal framework for cryptocurrency. Many experts believe that MiCA’s new, clear, regulatory guidelines will be able to create an attractive investment environment, and provide even more security that will drive interest from both institutional and retail investors.
Regulatory Advances: Ripple and MiCA
The crypto industry saw a significant development in regulatory advancements when the company Ripple secured a (partial) legal victory against the U.S. Securities and Exchange Commission (SEC) in the courtroom. The ruling stated that XRP tokens which were being sold on secondary crypto markets were not classified as securities, which meant it reduced regulatory concerns and reassured investors in the cryptocurrency market. This ruling signalled that regulatory clarity was within reach, boosting market confidence.
Meanwhile, the European Union (EU) approved the “Markets in Crypto-Assets” - MiCA legislation. This step brought Europe closer to forming a unified and legal framework for cryptocurrency. Many experts believe that MiCA’s new, clear, regulatory guidelines will be able to create an attractive investment environment, and provide even more security that will drive interest from both institutional and retail investors.
Emerging Catalysts for the Next Bull Run
Bitcoin ETF Approvals
As mentioned earlier, the approval of Bitcoin’s ETF was suspected to drive major shifts in the market, and by June of 2024, it was already showing as a milestone moment. ETFs helped to gain exposure to Bitcoin without a need to directly hold the asset, unlocking substantial new capital inflows in the markets. As a result, this breakthrough in cryptocurrency regulation caused an influx of capital into the market, finally establishing Bitcoin as a mainstream financial asset.
Emerging Catalysts for the Next Bull Run
Bitcoin ETF Approvals
As mentioned earlier, the approval of Bitcoin’s ETF was suspected to drive major shifts in the market, and by June of 2024, it was already showing as a milestone moment. ETFs helped to gain exposure to Bitcoin without a need to directly hold the asset, unlocking substantial new capital inflows in the markets. As a result, this breakthrough in cryptocurrency regulation caused an influx of capital into the market, finally establishing Bitcoin as a mainstream financial asset.
Technological Advancements: Scaling Bitcoin’s Utility
The future for Bitcoin isn't solely shaped by regulations or corporate adoption. Technological advancements play an equally critical role in its global acceptance. Innovations similar to Layer 2 scaling solutions and new token protocols expanded Bitcoin’s utility beyond serving as a mere store of value.
The Lightning Network, a second layer blockchain solution, has made significant progress by enabling faster and cheaper Bitcoin transactions, further encouraging its practicality in everyday use.
Technological Advancements: Scaling Bitcoin’s Utility
The future for Bitcoin isn't solely shaped by regulations or corporate adoption.
Technological advancements play an equally critical role in its global acceptance. Innovations similar to Layer 2 scaling solutions and new token protocols expanded Bitcoin’s utility beyond serving as a mere store of value. The Lightning Network, a second layer blockchain solution, has made significant progress by enabling faster and cheaper Bitcoin transactions, further encouraging its practicality in everyday use.
As Bitcoin becomes more functional in its role as a payment method, its utility offers more attracting a larger and more diverse group of users.
The emergence of Ordinals and BRC-20 tokens on the Bitcoin blockchain, introduced the possibility to create and trade NFTs and fungible tokens. This development further pushed Bitcoin beyond its traditional "digital gold" role, opening new possibilities and drawing in a more diverse audience.
As Bitcoin becomes more functional in its role as a payment method, its utility offers more attracting a larger and more diverse group of users.
The emergence of Ordinals and BRC-20 tokens on the Bitcoin blockchain, introduced the possibility to create and trade NFTs and fungible tokens. This development further pushed Bitcoin beyond its traditional "digital gold" role, opening new possibilities and drawing in a more diverse audience.
Financial Integration: Visa and Mastercard’s Stablecoin Integration
Financial integration developments continued in 2024, when Visa and Mastercard integrated stablecoins (USDC and Tether) into their global payments networks. This step allowed businesses and consumers to make everyday transactions using cryptocurrency stablecoins, making it more accessible and practical in daily financial activities. This move further reinforced Bitcoin’s role within the broader financial ecosystem by merging cryptocurrency with traditional financial systems.
Sharding and Scalability: Foundation for Mass Adoption
— Vitalik Buterin, CoinDesk, 2020.
In a world where blockchain infrastructure must handle billions of transactions daily, scalability is an essential factor. Sharding solves this problem by dividing one blockchain into smaller and more manageable parts, which are known as “shards”. The shards then allow for multiple transactions to be processed at the same time across the entire network. By doing this, they significantly boost transaction capacity.
The success of sharding could inspire future upgrades on Bitcoin, helping it stay competitive as the decentralised economy continues to expand. More efficient blockchains mean more users, more applications, and ultimately, increased demand for Bitcoin as the cornerstone of the entire ecosystem.
Financial Integration: Visa and Mastercard’s Stablecoin Integration
Financial integration developments continued in 2024, when Visa and Mastercard integrated stablecoins (USDC and Tether) into their global payments networks. This step allowed businesses and consumers to make everyday transactions using cryptocurrency stablecoins, making it more accessible and practical in daily financial activities. This move further reinforced Bitcoin’s role within the broader financial ecosystem by merging cryptocurrency with traditional financial systems.
Sharding and Scalability: Foundation for Mass Adoption
Sharding and Scalability: Foundation for Mass Adoption
— Vitalik Buterin, CoinDesk, 2020.
In a world where blockchain infrastructure must handle billions of transactions daily, scalability is an essential factor. Sharding solves this problem by dividing one blockchain into smaller and more manageable parts, which are known as “shards”. The shards then allow for multiple transactions to be processed at the same time across the entire network. By doing this, they significantly boost transaction capacity.
The success of sharding could inspire future upgrades on Bitcoin, helping it stay competitive as the decentralised economy continues to expand. More efficient blockchains mean more users, more applications, and ultimately, increased demand for Bitcoin as the cornerstone of the entire ecosystem.
Consensus Algorithms and Energy Efficiency
We talked about scalability and its relevance for furthering mass adoption, but scalability alone isn’t enough. As blockchain accumulation inclines, so does the need for energy-efficient and secure networks. Concerning this topic, a big step in the right direction was Ethereum’s shift to Proof of Stake (PoS), which resulted in a 99% reduction in energy consumption.
While Bitcoin remains committed to Proof of Work (PoW), the developments in PoS are pushing concerns about its environmental impact.
With networks like Ethereum leading the way for energy efficiency, Bitcoin will take cues from already existing advancements to maintain relevance in an increasingly eco-conscious world.
Consensus Algorithms and Energy Efficiency
We talked about scalability and its relevance for furthering mass adoption, but scalability alone isn’t enough. As blockchain accumulation inclines, so does the need for energy-efficient and secure networks. Concerning this topic, a big step in the right direction was Ethereum’s shift to Proof of Stake (PoS), which resulted in a 99% reduction in energy consumption.
While Bitcoin remains committed to Proof of Work (PoW), the developments in PoS are pushing concerns about its environmental impact.
With networks like Ethereum leading the way for energy efficiency, Bitcoin will take cues from already existing advancements to maintain relevance in an increasingly eco-conscious world.
AI and Blockchain: A Smarter, More Efficient Ecosystem
The integration of AI with blockchain is a powerful catalyst, enhancing everything from scalability to security.
Picture yourself in a future where AI predicts network congestion, optimises transactions, and continuously improves smart contracts autonomously. This isn’t just a technological upgrade, it’s about building a smarter and more adaptable ecosystem.
By interlinking AI into Bitcoin’s future, the network can evolve into a highly methodical and predictive system, boosting its ability to handle global adoption without compromising security or speed.
AI and Blockchain
The integration of AI with blockchain is a powerful catalyst, enhancing everything from scalability to security.
Picture yourself in a future where AI predicts network congestion, optimises transactions, and continuously improves smart contracts autonomously. This isn’t just a technological upgrade, it’s about building a smarter and more adaptable ecosystem.
By interlinking AI into Bitcoin’s future, the network can evolve into a highly methodical and predictive system, boosting its ability to handle global adoption without compromising security or speed.
AI and Blockchain: A Smarter, More Efficient Ecosystem
The integration of AI with blockchain is a powerful catalyst, enhancing everything from scalability to security.
Picture yourself in a future where AI predicts network congestion, optimises transactions, and continuously improves smart contracts autonomously. This isn’t just a technological upgrade, it’s about building a smarter and more adaptable ecosystem.
By interlinking AI into Bitcoin’s future, the network can evolve into a highly methodical and predictive system, boosting its ability to handle global adoption without compromising security or speed.
AI and Blockchain
The integration of AI with blockchain is a powerful catalyst, enhancing everything from scalability to security.
Picture yourself in a future where AI predicts network congestion, optimises transactions, and continuously improves smart contracts autonomously. This isn’t just a technological upgrade, it’s about building a smarter and more adaptable ecosystem.
By interlinking AI into Bitcoin’s future, the network can evolve into a highly methodical and predictive system, boosting its ability to handle global adoption without compromising security or speed.
Privacy Enhancements
Amid growing privacy demands, Bitcoin’s 2021 Taproot upgrade stood out as a game changer. It enabled more private and complex transactions while improving both security and scalability. Building on this momentum, many blockchain systems are adopting tools similar to zk-SNARKs (zero-knowledge proofs) which allows transactions to be verified without exposing their sensitive data. Taking care of privacy and security concerns makes Bitcoin more attractive to all investors.
Privacy Enhancements
Amid growing privacy demands, Bitcoin’s 2021 Taproot upgrade stood out as a game changer. It enabled more private and complex transactions while improving both security and scalability. Building on this momentum, many blockchain systems are adopting tools similar to zk-SNARKs (zero-knowledge proofs) which allows transactions to be verified without exposing their sensitive data. Taking care of privacy and security concerns makes Bitcoin more attractive to all investors.
"Taproot is a significant improvement for Bitcoin, bringing more privacy and better scalability without sacrificing security."
— Jimmy Song, CoinDesk, 2021.
Bridging the Digital and Physical
Tokenizing real world assets such as luxury properties or vineyards will allow investors to trade fractions of the assets like they are already doing with cryptocurrencies (Bitcoin, Ethereum…). This innovation opens markets that are traditionally very exclusive to a broader audience opening the possibility of new ATHs.
Bitcoin is uniquely positioned to be the secure settlement layer for these tokenized assets. As this trend accelerates, Bitcoin’s role will expand while allowing the transfer of valuable assets, all backed by its decentralised network.
Bridging the Digital and Physical
Tokenizing real world assets such as luxury properties or vineyards will allow investors to trade fractions of the assets like they are already doing with cryptocurrencies (Bitcoin, Ethereum…). This innovation opens markets that are traditionally very exclusive to a broader audience opening the possibility of new ATHs.
Bitcoin is uniquely positioned to be the secure settlement layer for these tokenized assets. As this trend accelerates, Bitcoin’s role will expand while allowing the transfer of valuable assets, all backed by its decentralised network.
Macroeconomic Catalysts
Inflation, interest rates, and global economic shifts are the most important macroeconomic factors and are the main trends pulling influence in Bitcoin’s price movements. Market trends are the ones that influence sentiment in the market from which the real demand for Bitcoin as an alternative asset during periods of economic uncertainty.
This is how these macroeconomic catalysts are fueling the future of digital assets:
Macroeconomic Catalysts
Inflation, interest rates, and global economic shifts are the most important macroeconomic factors and are the main trends pulling influence in Bitcoin’s price movements. Market trends are the ones that influence sentiment in the market from which the real demand for Bitcoin as an alternative asset during periods of economic uncertainty.
This is how these macroeconomic catalysts are fueling the future of digital assets:
Federal Reserve Rate Cuts (September 18, 2024):
The Fed caught markets off guard with a 50 basis points (bp) rate cut or 0.5%, setting the target range between 4.75% - 5.00%. This is the first interest rate reduction that occurred in the past four years. This move is a signal of a significant shift in their approach to economic management and is heading in the direction of addressing the slowing economic growth and control of inflation.
If we draw a parallel between the 2007 tax rate cut, and the one we witnessed on the same date, exactly 17 years later, on September 18th 2024, we can observe a striking similarity in timing before major economic events. The 2007 tax cut preceded the global financial crisis where signals of economic instability were already starting to surface, but the full recession had not yet hit. Similarly, this recent 2024 rate cut could show a precautionary move by the Fed to counteract the economic challenges such as inflation or an economic slowdown reappearing.
This historical parallel raises many concerns whether the 2024 cut might precede another significant economic downturn, particularly when global markets remain volatile.
Declining interest rates are frequently observed as an indicator of economic instability, and when in decline, investors are somewhat forced to seek refuge in Bitcoin in order to keep the value of their assets as high as possible. By holding onto cryptocurrencies, while inflation is eating away at the value of traditional fiat currencies, investors protect their wealth from currency depreciation.
Federal Reserve Rate Cuts (September 18, 2024):
The Fed caught markets off guard with a 50 basis points (bp) rate cut or 0.5%, setting the target range between 4.75% - 5.00%. This is the first interest rate reduction that occurred in the past four years. This move is a signal of a significant shift in their approach to economic management and is heading in the direction of addressing the slowing economic growth and control of inflation.
If we draw a parallel between the 2007 tax rate cut, and the one we witnessed on the same date, exactly 17 years later, on September 18th 2024, we can observe a striking similarity in timing before major economic events. The 2007 tax cut preceded the global financial crisis where signals of economic instability were already starting to surface, but the full recession had not yet hit. Similarly, this recent 2024 rate cut could show a precautionary move by the Fed to counteract the economic challenges such as inflation or an economic slowdown reappearing.
This historical parallel raises many concerns whether the 2024 cut might precede another significant economic downturn, particularly when global markets remain volatile.
Declining interest rates are frequently observed as an indicator of economic instability, and when in decline, investors are somewhat forced to seek refuge in Bitcoin in order to keep the value of their assets as high as possible. By holding onto cryptocurrencies, while inflation is eating away at the value of traditional fiat currencies, investors protect their wealth from currency depreciation.
Global CBDC Expansion
Global CBDC Expansion
“Digital currencies are representations of value of digital form with monetary characteristics”
- Eli Noam, World Economic Forum, June 2022.
Globally, significant progress has been made in developing Central Bank Digital Currencies (CBDCs), with Japan publicly testing the digital yen and Brazil advancing the digital real.
These efforts aim to modernise financial systems and reduce dependence on physical cash.
Globally, significant progress has been made in developing Central Bank Digital Currencies (CBDCs), with Japan publicly testing the digital yen and Brazil advancing the digital real.
These efforts aim to modernise financial systems and reduce dependence on physical cash.
U.S. Banking Crisis
Following the early 2023 downfall of several key banks such as Silicon Valley Bank and Signature Bank a surge in enthusiasm for assets beyond the control of any one nation or entity like Bitcoin was noted. With growing doubts about the solidity of conventional banks many turned to Bitcoin viewing it as a protective measure against the possible shakiness of the banking network.
U.S. Banking Crisis
Following the early 2023 downfall of several key banks such as Silicon Valley Bank and Signature Bank a surge in enthusiasm for assets beyond the control of any one nation or entity like Bitcoin was noted. With growing doubts about the solidity of conventional banks many turned to Bitcoin viewing it as a protective measure against the possible shakiness of the banking network.
Global Inflation and Currency Devaluation
Increases in inflation and currency devaluations, especially in third world countries, or those in current states of war, have led people to explore Bitcoin, Ethereum and some stablecoin cryptocurrencies as possible alternatives to their own local currencies. During difficult times of economic instability, these digital assets provide a way to protect personal wealth when local currencies lose value. Bitcoin’s scarce, fixed supply makes it an appealing source to preserve wealth against financial instability.
Global Inflation and Currency Devaluation
Increases in inflation and currency devaluations, especially in third world countries, or those in current states of war, have led people to explore Bitcoin, Ethereum and some stablecoin cryptocurrencies as possible alternatives to their own local currencies. During difficult times of economic instability, these digital assets provide a way to protect personal wealth when local currencies lose value. Bitcoin’s scarce, fixed supply makes it an appealing source to preserve wealth against financial instability.
Retail and Cultural Adoption
Digital innovation continues to improve how we interact with money, AI, blockchain, and mobile payments. The cultural adoption of Bitcoin has surged due to simplified access to the currency, as well as major generational shifts and social media influence. The future of cryptocurrencies is largely dependent on institutional investment and as major financial institutions, hedge funds and leading firms enter the market, credibility and stability will follow.
Retail and Cultural Adoption
Digital innovation continues to improve how we interact with money, AI, blockchain, and mobile payments. The cultural adoption of Bitcoin has surged due to simplified access to the currency, as well as major generational shifts and social media influence. The future of cryptocurrencies is largely dependent on institutional investment and as major financial institutions, hedge funds and leading firms enter the market, credibility and stability will follow.
Mobile Payment Integration
Apps like Cash App and Venmo and PayPal now allow Bitcoin transactions, making it easier for younger users to adopt and use crypto in everyday payments. This allows millions of people to easily buy, sell and store Bitcoin directly through their mobile devices. These mobile apps have massive user bases, with PayPal alone boasting over 400 million active accounts. This means that Bitcoin is reaching a broader, more mainstream audience. Just like how streaming platforms replaced physical DVDs, mobile payments and digital currencies are replacing the need for cash, making transactions very simple and feasible.
Mobile Payment Integration
Apps like Cash App and Venmo and PayPal now allow Bitcoin transactions, making it easier for younger users to adopt and use crypto in everyday payments. This allows millions of people to easily buy, sell and store Bitcoin directly through their mobile devices. These mobile apps have massive user bases, with PayPal alone boasting over 400 million active accounts. This means that Bitcoin is reaching a broader, more mainstream audience. Just like how streaming platforms replaced physical DVDs, mobile payments and digital currencies are replacing the need for cash, making transactions very simple and feasible.
Cultural Influence: High-Profile Endorsements and Social Media
People from all spheres including celebrities, influencers, politicians, including some of the most influential entrepreneurs in the world like Elon Musk or Jack Dorsey have been loud supporters of Bitcoin since its beginning. Elon Musk, who is the current owner of the platform X (formerly known as twitter), has vocalised his thoughts about Bitcoin, and cryptocurrencies in general, multiple times, which put a lot of eyes on the invention. With one particular tweet, in 2021, Musk caused massive spikes in the price of Bitcoin which called for all hands on media attention. His company, Tesla, further legitimised Bitcoin by investing $1.5 billion and additionally, on the platform X, there has been an integration of Bitcoin tipping, making it easy and therefore more common for users to engage with Bitcoin in everyday transactions, especially among younger audiences.
Cultural Influence: High-Profile Endorsements and Social Media
People from all spheres including celebrities, influencers, politicians, including some of the most influential entrepreneurs in the world like Elon Musk or Jack Dorsey have been loud supporters of Bitcoin since its beginning. Elon Musk, who is the current owner of the platform X (formerly known as twitter), has vocalised his thoughts about Bitcoin, and cryptocurrencies in general, multiple times, which put a lot of eyes on the invention. With one particular tweet, in 2021, Musk caused massive spikes in the price of Bitcoin which called for all hands on media attention. His company, Tesla, further legitimised Bitcoin by investing $1.5 billion and additionally, on the platform X, there has been an integration of Bitcoin tipping, making it easy and therefore more common for users to engage with Bitcoin in everyday transactions, especially among younger audiences.
Adoption Among Younger Generations Globally
Globally, younger generations are fully embracing Bitcoin and quickly. In many countries, nearly 50% of Millennials and Gen Z have either already invested in Bitcoin or at least shown interest in any cryptocurrencies, often favouring digital assets over traditional finance.
Trillions of dollars is expected to be transferred from Baby Boomers over to Millennials and Gen Z over the coming decades, and a significant portion of this wealth is predicted to be transferred into cryptocurrencies.
Adoption Among Younger Generations Globally
Globally, younger generations are fully embracing Bitcoin and quickly. In many countries, nearly 50% of Millennials and Gen Z have either already invested in Bitcoin or at least shown interest in any cryptocurrencies, often favouring digital assets over traditional finance.
Trillions of dollars is expected to be transferred from Baby Boomers over to Millennials and Gen Z over the coming decades, and a significant portion of this wealth is predicted to be transferred into cryptocurrencies.
Cryptocurrency as a Symbol of Financial Independence
The emergence of Bitcoin reopened the conversation of the overall perception of money, and as a result had a hand in empowering individuals across the world to control their financial future. For both Millennials and Gen Z, Bitcoin represents financial “independence” and a way to avoid traditional banking systems and rules they see unfit. The decentralised nature of cryptocurrencies in general, resonated with many in younger generations, who value autonomy and control over their finances more than the generations before them.
Cryptocurrency as a Symbol of Financial Independence
The emergence of Bitcoin reopened the conversation of the overall perception of money, and as a result had a hand in empowering individuals across the world to control their financial future. For both Millennials and Gen Z, Bitcoin represents financial “independence” and a way to avoid traditional banking systems and rules they see unfit. The decentralised nature of cryptocurrencies in general, resonated with many in younger generations, who value autonomy and control over their finances more than the generations before them.
Risks to the Bull Run
Despite its strong growth potential, Bitcoin faces several risks that could hinder a “classical” bull run. These include regulatory issues, technological weaknesses and market volatility.
Risks to the Bull Run
Despite its strong growth potential, Bitcoin faces several risks that could hinder a “classical” bull run. These include regulatory issues, technological weaknesses and market volatility.
Regulatory Pressure Intensifies
U.S. regulators, led by the SEC, escalated enforcement actions against major crypto exchanges for not complying with securities laws. By categorising many crypto assets as securities, these exchanges would need to subdue to stricter transparency and compliance standards, similar to those that are already governing traditional financial markets. This oversight will bring higher regulatory and legal clarity to protect investors in the cryptocurrency space, but may also surprise us with many new challenges, especially for smaller exchanges and projects as following this new strict set of rules can amount to be a costly operation.
Regulatory Pressure Intensifies
U.S. regulators, led by the SEC, escalated enforcement actions against major crypto exchanges for not complying with securities laws. By categorising many crypto assets as securities, these exchanges would need to subdue to stricter transparency and compliance standards, similar to those that are already governing traditional financial markets. This oversight will bring higher regulatory and legal clarity to protect investors in the cryptocurrency space, but may also surprise us with many new challenges, especially for smaller exchanges and projects as following this new strict set of rules can amount to be a costly operation.
DeFi Security Challenges
With the growth of the cryptocurrency market, also came increased security challenges. High-profile incidents such as phishing attacks, code vulnerabilities, and private key compromises expose critical weaknesses across blockchain networks.
These security concerns present a serious risk to individual users but are also seriously affecting the entire crypto ecosystem. In 2024 there had been over $1 billion dollars in total losses caused by on-chain security incidents, and Ethereum was one of the hardest hit blockchains. The major risks included phishing attacks as well as private key compromises. (CertiK, 2024). To mitigate these risks, it’s essential for users to adopt better key management practices and implement stronger security protocols when transferring assets on public networks.
DeFi Security Challenges
With the growth of the cryptocurrency market, also came increased security challenges. High-profile incidents such as phishing attacks, code vulnerabilities, and private key compromises expose critical weaknesses across blockchain networks.
These security concerns present a serious risk to individual users but are also seriously affecting the entire crypto ecosystem. In 2024 there had been over $1 billion dollars in total losses caused by on-chain security incidents, and Ethereum was one of the hardest hit blockchains. The major risks included phishing attacks as well as private key compromises. (CertiK, 2024). To mitigate these risks, it’s essential for users to adopt better key management practices and implement stronger security protocols when transferring assets on public networks.
EU Parliament Agrees on New AML Laws for Crypto Firms
New anti money Laundering (AML) laws in Europe, set to tighten crypto regulations with stricter Know Your Customer (KYC) and reporting requirements are targeting crypto firms. These new rules are designed to put illicit activity in the crypto space to the side and align crypto firms with traditional financial institutions regarding compliance standards. Compliance may raise costs, but it could also boost transparency and attract wider adoption.
EU Parliament Agrees on New AML Laws for Crypto Firms
New anti money Laundering (AML) laws in Europe, set to tighten crypto regulations with stricter Know Your Customer (KYC) and reporting requirements are targeting crypto firms. These new rules are designed to put illicit activity in the crypto space to the side and align crypto firms with traditional financial institutions regarding compliance standards. Compliance may raise costs, but it could also boost transparency and attract wider adoption.
Conclusion
Crypto is approaching what could be one of its most significant turning points. The recent halving of Bitcoin in 2024, combined with the traction from institutional adoption, the approval of Bitcoin ETFs and the support from giant firms such as BlackRock, positions the market to gain more momentum. Similarly, institutional involvement has also moved crypto beyond the hypothetical asset it once was, paving the way for its role in mainstream finance.
Regulatory frameworks, including Europe’s MiCA and Ripple’s legal progress in the U.S., are providing much needed clarity, encouraging both retail and institutional investors to engage with greater confidence. This regulatory evolution is laying a stronger foundation, signalling that crypto is evolving into a legitimate asset class set for broader adoption.
On the technological side, advancements like scaling solutions and the growing popularity of tokenized assets are expanding the utility of cryptocurrencies. Traditional finance players like Visa and Mastercard are now integrating stablecoins into their systems. Ultimately, creating a bridge between digital assets and everyday financial services. This is gradually adding more credibility to crypto’s role in the global economy.
Despite ongoing challenges, particularly around regulation and security in decentralised finance, the blend of institutional support, technological progress, and larger economic trends points to a path of consistent growth for crypto. Unlike previous cycles, today’s momentum seems more sustainable, indicating that crypto’s role in the financial system will continue to grow.
In our view, this is not just another emerging bull run. It’s the beginning of a more permanent integration of crypto into the global financial system, offering lasting opportunities for those prepared to adapt. These catalysts are transforming Bitcoin from “just” a digital currency into a coveted asset in the decentralised world. As each breakthrough brings Bitcoin closer to its next bull run. The only question that remains is: How high can it go?
Conclusion
Crypto is approaching what could be one of its most significant turning points. The recent halving of Bitcoin in 2024, combined with the traction from institutional adoption, the approval of Bitcoin ETFs and the support from giant firms such as BlackRock, positions the market to gain more momentum. Similarly, institutional involvement has also moved crypto beyond the hypothetical asset it once was, paving the way for its role in mainstream finance.
Regulatory frameworks, including Europe’s MiCA and Ripple’s legal progress in the U.S., are providing much needed clarity, encouraging both retail and institutional investors to engage with greater confidence. This regulatory evolution is laying a stronger foundation, signalling that crypto is evolving into a legitimate asset class set for broader adoption.
On the technological side, advancements like scaling solutions and the growing popularity of tokenized assets are expanding the utility of cryptocurrencies. Traditional finance players like Visa and Mastercard are now integrating stablecoins into their systems. Ultimately, creating a bridge between digital assets and everyday financial services. This is gradually adding more credibility to crypto’s role in the global economy.
Despite ongoing challenges, particularly around regulation and security in decentralised finance, the blend of institutional support, technological progress, and larger economic trends points to a path of consistent growth for crypto. Unlike previous cycles, today’s momentum seems more sustainable, indicating that crypto’s role in the financial system will continue to grow.
In our view, this is not just another emerging bull run. It’s the beginning of a more permanent integration of crypto into the global financial system, offering lasting opportunities for those prepared to adapt. These catalysts are transforming Bitcoin from “just” a digital currency into a coveted asset in the decentralised world. As each breakthrough brings Bitcoin closer to its next bull run. The only question that remains is: How high can it go?
Introducing The First Ever Bitcoin DeFi Fund: Shaping the Future of Decentralised Finance on Bitcoin
At Peakable, we've observed that most investors view blockchain as a distinct asset class and prefer to have an expert partner manage allocations across its diverse opportunities.
In response, we are introducing the Peakable Bitcoin DeFi Fund, specifically structured to offer comprehensive exposure to the entire spectrum of Bitcoin-based DeFi opportunities. The fund provides investors with a focused approach to the Bitcoin ecosystem, enabling them to capitalise on its expanding potential as it evolves beyond a store of value.
Introducing The First Ever Bitcoin DeFi Fund: Shaping the Future of Decentralised Finance on Bitcoin
At Peakable, we've observed that most investors view blockchain as a distinct asset class and prefer to have an expert partner manage allocations across its diverse opportunities.
In response, we are introducing the Peakable Bitcoin DeFi Fund, specifically structured to offer comprehensive exposure to the entire spectrum of Bitcoin-based DeFi opportunities. The fund provides investors with a focused approach to the Bitcoin ecosystem, enabling them to capitalise on its expanding potential as it evolves beyond a store of value.
LPs can choose from Class V (Venture) for venture equity, Class I (Illiquids) for venture equity, early-stage tokens, and locked-up treasury tokens, or Class A for all-in-one exposure across all Bitcoin DeFi assets.
LPs can choose from Class V (Venture) for venture equity, Class I (Illiquids) for venture equity, early-stage tokens, and locked-up treasury tokens, or Class A for all-in-one exposure across all Bitcoin DeFi assets.
We are committed to offering our Limited Partners (LPs) co-investment opportunities in select deals. LPs with larger capital commitments will have the opportunity to co-invest in at least 10% of each venture equity, private token, and special opportunity deal. As always, these opportunities are available on a capacity basis and are subject to minimal fees.
Peakable DeFi Fund I is targeting its first closing in Q4 2024. We invite you to learn more about this exciting opportunity by connecting with our team directly or visiting Peakable.io.invest
We are committed to offering our Limited Partners (LPs) co-investment opportunities in select deals. LPs with larger capital commitments will have the opportunity to co-invest in at least 10% of each venture equity, private token, and special opportunity deal. As always, these opportunities are available on a capacity basis and are subject to minimal fees.
Peakable DeFi Fund I is targeting its first closing in Q4 2024. We invite you to learn more about this exciting opportunity by connecting with our team directly or visiting Peakable.io.invest
A message from Peakable's Founder
When we started Peakable, we saw a world where innovation drives meaningful change. Through our experience in venture capital, private equity, and technology, we’ve come to one clear conclusion: Bitcoin holds the key to the next evolution of decentralised finance.
Our partnership with OP_NET isn’t about following trends; it’s about unlocking new opportunities. Together, we’re expanding Bitcoin beyond its role as “digital gold,” turning it into the foundation of a fully decentralised financial ecosystem. With smart contracts on Bitcoin, we’ve unlocked the potential for decentralised exchanges, Layer 2 solutions, lending platforms, NFTs, and more.
We have always believed that real innovation comes from taking calculated risks and staying ahead of the curve.
That’s exactly what we are doing by focusing on Bitcoin DeFi, making this vision a reality with OP_NET as our partner.
Why This Matters to You
As a founder or investor, you know that timing is crucial, but having the right partner can make all the difference. We’re supporting founders in building on Bitcoin by providing early-stage investments, strategic guidance, and access to a robust network of partners and visionaries.
For investors, we offer exclusive access to a variety of early-stage asset classes that leverage Bitcoin’s emerging smart contract capabilities. Major institutions like BlackRock and Fidelity have already recognised Bitcoin’s potential, and interest is growing rapidly.
At Peakable, we’re ahead of the curve, building the bridges between institutional capital and the Bitcoin-based DeFi space. If you’ve been waiting for the right moment to get involved, this is it.
The Road Ahead
Our mission with the Peakable Bitcoin DeFi Fund is clear: Peakable will continue to lead the transformation of Bitcoin, turning it into the foundation of a mainstream financial system. We are backing projects that challenge the status quo and bring decentralised finance into the forefront of global finance.
I firmly believe that in the next few years, we’ll look back and realise that this was the moment when Bitcoin truly became the foundation for a new financial system.
I am incredibly excited about what’s to come, and I invite you to join us on this journey. Whether you’re a founder with an idea that could change the world, or an investor looking for the next big opportunity.
Peakable is the partner that can help you get there.
Let’s Build the Future of Technology Together
Thank you for your time, and I look forward to what we’ll accomplish together.
Cyrille de Lange
A message from Peakable's Founder
When we started Peakable, we saw a world where innovation drives meaningful change. Through our experience in venture capital, private equity, and technology, we’ve come to one clear conclusion: Bitcoin holds the key to the next evolution of decentralised finance.
Our partnership with OP_NET isn’t about following trends; it’s about unlocking new opportunities. Together, we’re expanding Bitcoin beyond its role as “digital gold,” turning it into the foundation of a fully decentralised financial ecosystem. With smart contracts on Bitcoin, we’ve unlocked the potential for decentralised exchanges, Layer 2 solutions, lending platforms, NFTs, and more.
We have always believed that real innovation comes from taking calculated risks and staying ahead of the curve.
That’s exactly what we are doing by focusing on Bitcoin DeFi, making this vision a reality with OP_NET as our partner.
Why This Matters to You
As a founder or investor, you know that timing is crucial, but having the right partner can make all the difference. We’re supporting founders in building on Bitcoin by providing early-stage investments, strategic guidance, and access to a robust network of partners and visionaries.
For investors, we offer exclusive access to a variety of early-stage asset classes that leverage Bitcoin’s emerging smart contract capabilities. Major institutions like BlackRock and Fidelity have already recognised Bitcoin’s potential, and interest is growing rapidly.
At Peakable, we’re ahead of the curve, building the bridges between institutional capital and the Bitcoin-based DeFi space. If you’ve been waiting for the right moment to get involved, this is it.
The Road Ahead
Our mission with the Peakable Bitcoin DeFi Fund is clear: Peakable will continue to lead the transformation of Bitcoin, turning it into the foundation of a mainstream financial system. We are backing projects that challenge the status quo and bring decentralised finance into the forefront of global finance.
I firmly believe that in the next few years, we’ll look back and realise that this was the moment when Bitcoin truly became the foundation for a new financial system.
I am incredibly excited about what’s to come, and I invite you to join us on this journey. Whether you’re a founder with an idea that could change the world, or an investor looking for the next big opportunity.
Peakable is the partner that can help you get there.
Let’s Build the Future of Technology Together
Thank you for your time, and I look forward to what we’ll accomplish together.
Cyrille de Lange
If you’re an Investor or Founder that wants to grow with Peakable;
If you’re an Investor or Founder that wants to grow with Peakable;
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