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⚡Bitcoin Surges Past $40K Milestone🗿

Croxroad

04 Dec 2023 — 4 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

🔝 Bitcoin's 19-Month High

Over the weekend, Bitcoin made a significant move, surpassing the $40,000 mark for the first time since May 2022. Bitcoin had been flirting with the $40,000 level recently but finally breached it, reaching over $40,600.

The resurgence follows a period where Bitcoin dropped below $40,000 in April 2022 but rebounded in recent months. This recovery is attributed to optimistic comments from U.S. central bankers and hopes for the approval of a spot Bitcoin exchange-traded fund (ETF). Ethereum's rise coincides with Bitcoin holders withdrawing significant amounts of BTC, indicating a preference for direct custody.

The crypto market's momentum aligns with gold futures hitting a record high after comments from Federal Reserve Chairman Jerome Powell on restrictive interest rates. Analysts anticipate a rate cut in the coming year, and optimism surrounds Bitcoin ETF applications. The bullish sentiment is seen as an official statement of a bull run, potentially leading to further price increases.

Recent weeks have seen traders betting on Bitcoin's rise to $45,000 by March 2024 through topside option plays. While the crypto market responds positively to lower yields, upcoming economic data releases, such as U.S. ISM services PMI and non-farm payrolls for December, could impact the trajectory, especially if a strong NFP figure affects Fed rate cut expectations for 2024, potentially slowing Bitcoin's ascent.

🪖 Bitcoin's Ascent

In a nutshell, a member of the United States Space Force, Jason Lowery, has suggested that the U.S. should formally investigate the use of proof-of-work networks like Bitcoin for national security. In a letter to the U.S. Defense Innovation Board, Lowery emphasised that Bitcoin's role goes beyond being a financial system—it can also secure various forms of data and messages. He proposed that the Defense Innovation Board advise the Secretary of Defense to explore the "national strategic importance" of proof-of-work systems.

Lowery believes that the proof-of-work system, similar to Bitcoin's, could act as a deterrent against cyberattacks due to the high costs associated with resource-intensive computers. He sees Bitcoin as a key player in maintaining the U.S.'s global leadership, describing it as the beginning of a "cybersecurity revolution." Lowery, a national defence fellow at MIT, previously proposed a cybersecurity tool based on Bitcoin.

Coinbase CEO Brian Armstrong echoed the sentiment, suggesting that Bitcoin and cryptocurrencies could help the U.S. maintain its dominance with the U.S. dollar. Armstrong sees cryptocurrencies as a natural complement to the dollar, offering an alternative in case of a dollar devaluation. He emphasised the potential of cryptocurrencies as a hedge against inflation, presenting them as a better alternative than switching to another country's fiat currency.

Overall, both Lowery and Armstrong argue that understanding and utilising Bitcoin and cryptocurrencies are crucial for the U.S. in the evolving landscape of digital and interconnected security threats.

🥑 Dollar-Cost Averaging (DCA)

Alright, so dollar-cost averaging (DCA) is a strategy where you invest a fixed amount of money at regular intervals, like every week or month, in small portions. This way, you can benefit from market increases without risking all your holdings at once.

Here's how it works: decide on an amount of money you want to invest regularly in your favourite cryptocurrency over a specific period. Stick to this plan, regardless of how the market is doing, until you reach your investment goal.

The interesting thing about DCA is that you buy into the market when it's high and when it's low. It helps smooth out your investments over time, so you're not as affected by extreme market highs or lows compared to investing a large sum all at once.

One thing to keep in mind is that because DCA is a long-term strategy, you might end up paying more in fees as you trade your crypto assets. So, before jumping into any trading strategy, it's always a good idea to do your own research and understand the potential costs and benefits involved.