Author: 636Marx

As bitcoin breaks free from the pressure of falling below $0.06 million, an urgent question arises: has it completely escaped the downturn quagmire?

First, follow the author to interpret several recent news related to bitcoin. In recent months, the digital currency market has shown resilience, benefiting first from influential participants such as MicroStrategy (an American software development listed company) and Samara Asset Group, who have taken high-profile investment actions in bitcoin strategy. Secondly, under the guidance of co-founder Vitalik Buterin, ethereum is undergoing a major transformation, shifting towards a more sustainable proof-of-stake (PoS) mechanism after the ethereum merger.

Bitcoin back above $0.064 million: Have we emerged from the predicament?

Since reaching a historical high near $69,000 in 2021, bitcoin has experienced several fluctuations. Market adjustments, regulatory uncertainty, and global macroeconomic conditions have led to its long-term slump, sometimes falling below $20,000.

However, with the increase in institutional interest, more optimistic prospects have emerged. Influential companies like MicroStrategy and the German Samara Asset Group play a key role in restoring confidence in bitcoin. MicroStrategy's CEO, Michael Saylor, has long been a strong advocate of bitcoin, and the company continues to expand its holdings - reportedly now exceeding 152,000 BTC. This strategy has made MicroStrategy synonymous with large-scale bitcoin investments, and its stock price has soared along with the recovery of bitcoin.

In October 2024, the Samara Asset Group announced plans to invest 30 million euros in Bitcoin through the issuance of bonds. Patrick Lowry, CEO of Samara, described this investment as a bold move to increase Bitcoin reserves. Although Samara's holdings are much smaller than MicroStrategy, this move may inspire other institutions to follow suit, as Bitcoin as a treasury asset similar to gold is gaining broader acceptance.

This plan coincides with the recovery of market optimism, as Bitcoin's trend rebounds from previous lows, MicroStrategy's stock soaring to new highs, highlighting the increasingly strong correlation between its wealth and Bitcoin price trajectory. The potential of Bitcoin banks may reshape financial services, especially in cases where traditional banking institutions are cautious about adopting digital currencies. This will mark a significant step towards mainstream acceptance of Bitcoin as a medium of exchange, not just a store of value.

Meanwhile, Ethereum's ongoing transition plays a crucial role in the broader cryptocurrency field. Ethereum co-founder Vitalik Buterin led the long-awaited Ethereum merge - transitioning from Proof of Work (PoW) to Proof of Stake (PoS) was completed at the end of 2022. This shift has significantly reduced Ethereum's energy consumption by over 99%, addressing a key criticism of cryptocurrencies, mining's environmental impact. This transition lays the foundation for the next stage of Ethereum's development, making it more scalable, secure, and sustainable with the transition to PoS, providing an opportunity for the flourishing development of decentralized applications (dApps) and decentralized finance (DeFi) projects. These innovations, supported by Ethereum's robust blockchain, may attract more developers and institutional investors seeking eco-friendly blockchain solutions.

Despite these technical advancements, Ethereum's price has seen significant declines during the broader crypto market downturns, but like Bitcoin, it has been recovering. The shift to PoS and updates such as sharding aimed at enhancing scalability make Ethereum a more competitive platform in the blockchain space. Although Ethereum's goals are not directly competitive with Bitcoin, its practical-centered approach contrasts sharply with Bitcoin's role as 'digital gold.'

However, despite these technological advancements, its price has dropped significantly during the downturn in the broader crypto market, but like Bitcoin, it has been regaining momentum. The transition to PoS and updates like sharding aimed at improving scalability make Ethereum a more competitive platform in the blockchain field. While Ethereum's goals are not directly competitive with Bitcoin, its practicality-focused approach contrasts with Bitcoin's role as "digital gold."

The rise of bitcoin to $64,000 marks a resurgence in trend, but it does not guarantee immunity from future fluctuations. Bitcoin is significantly influenced by macroeconomic factors, regulatory changes, and institutional investors. Institutions like MicroStrategy and Samara are key players in this trend's recovery.

MicroStrategy's Bitcoin bank plan: the endgame?

Driven by institutional adoption and technological advancements, both bitcoin and ethereum are currently experiencing positive momentum. However, the future remains uncertain. While there is hope for bitcoin to break through $70,000 in the near future, it is not definitive. Sustained support from institutions like MicroStrategy and Samara is crucial, but further developments in regulation and innovation will determine whether bitcoin can maintain its upward trajectory.

MicroStrategy's ambition extends beyond holding bitcoin, as recent reports indicate the company is developing a bitcoin bank project aimed at bridging traditional finance and the digital currency space. While a bitcoin-centric bank concept is not entirely new, MicroStrategy's execution could provide a more integrated platform for businesses and individuals to store and trade using bitcoin.

For ethereum, the post-merge era is just beginning. Vitalik Buterin's vision of ethereum as a scalable, eco-friendly blockchain is gaining developer attention. As bitcoin and ethereum evolve, their trajectories could lead the entire digital currency ecosystem.

The market is bullish in the short term: thinking further ahead?

The author believes that in the short term, the market outlook is bullish, but the long-term prospects depend on continued institutional support, technological progress, and regulatory clarity.

As a hedge against inflation or a store of value, bitcoin is slowly losing its original identity with the continuous involvement of institutions, becoming a purely speculative financial tool, a truly risky asset.

After the Ethereum merge, focusing on energy efficiency, scalability, and dApp growth, it has the potential to completely change the industry through smart contracts and decentralized finance, becoming another evolution in the blockchain world.