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But is it possible that these exponential gains could still just be the beginning for Bitcoin? While the largest cryptocurrency is down 2% year to date after a 302% gain in 2020 and a 57% gain on top of that for 2021, there are several reasons that the original cryptocurrency could be gearing up to head even higher over the long term.
Over the past two years, a who’s who of legendary hedge fund managers and investors, including Bill Miller, Paul Tudor Jones, and even Ray Dalio, have spoken positively about the token.
Furthermore, Goldman Sachs recently changed its homepage to prominently feature the metaverse, Web3, and cryptocurrency, and the 153-year old investment bank made headlines for becoming the first major U.S.
As Terra continues to purchase more Bitcoin and other blockchains that offer stablecoins potentially follow suit, this is another huge demand driver for Bitcoin that will take even more of it off the open market.
The Bitcoin network hit a milestone on April 2: There are now only 2 million remaining Bitcoin to be mined out of the original 21 million.
Bitcoin is finite by design, and the influx of institutional buyers combined with the rise of other blockchains like Terra that are amassing Bitcoin means that we may still be in the early innings of Bitcoin as it grows more scarce.