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Now we have gone through Bitcoin ’ s fourth halving event , which was followed by Bitcoin ’ s recent and significant rally to a new all-time high , we can analyse , to some extent , some of the patterns and factors contributing to these price movements and assess how the reduction in supply influences market behaviour , investor sentiment and long-term price trends .
Perhaps such rallies could be attributed to some positive regulatory developments in various countries , providing a more favourable environment for cryptocurrency trading and usage . The anticipation of potential approval for spot Bitcoin Exchange- Traded Funds ( ETFs ) in the United States has generated excitement among investors , as such approval would likely bring a greater degree of mainstream acceptance and liquidity to the market .
However , there are many concerns regarding regulatory scrutiny , market manipulation and the volatility inherent in cryptocurrencies that might affect the approval process and the subsequent performance of Bitcoin ETFs .
Bitcoin : A retail-driven market vulnerable to economic stress and regulatory uncertainty Unlike equities , which are supported by institutional investments and cushioned against severe volatility , or gold , which is anchored in tangible value and historical stability , Bitcoin ’ s market is more fragmented , and largely driven by retail investors . This makes Bitcoin
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