Understanding the Impact of Bitcoin’s Global Growth on the Market

For several reasons, the market is buzzing with excitement as Bitcoin (BTC) garners attention this March. Prominent investors are pouring in after the SEC allowed engagement with Bitcoin prices via spot ETFs. It leads to a decrease in supply as we look forward to next month’s halving event.

Bitcoin is a digital currency, basically online money that can be used to pay for things without a bank or an intermediary. It’s given to people who help confirm online transactions, and you can also buy it on various trading platforms.

In 2009, someone, perhaps a person or a group called Satoshi Nakamoto, introduced Bitcoin. It’s the most well-known virtual currency worldwide, inspiring many others.

Bitcoin ETF approval and its impact

Many blockchain and cryptocurrency experts highlight the importance of the SEC’s approval of ETFs. This achievement gives ordinary investors a regulated way to invest in Bitcoin.

Last year, U.S. policies largely supported Bitcoin and other cryptocurrencies in legal and governmental scopes. However, the threat of heavy U.S. regulations has been a big worry, as it could potentially damage Bitcoin’s market worth.

Thanks to the SEC approving Bitcoin ETFs, regulatory issues have lessened significantly. This change allows investors to buy critical blockchain-based digital money on Wall Street, just like purchasing shares in well-known companies like Coca-Cola or Chevrolet. Despite this, Bitcoin’s impact isn’t limited to just the U.S. in 2024. Here are seven signs that Bitcoin is making waves globally.

The 7 signs

Kimchi Premium Hits Highest in 2 Years

In South Korea, the “kimchi premium,” which shows how much more South Koreans pay for Bitcoin compared to the average global price, reached a 27-month high of 10.32% on March 6. This indicates a growing demand for Bitcoin in the country.

South Korea’s tight capital controls have resulted in a constant shortage of BTC, leading to higher Bitcoin costs. This phenomenon is known as the ‘kimchi premium,’ named after the famous Korean dish.

Bitcoin Ownership Increases in El Salvador

El Salvador’s investment in Bitcoin has paid off. They originally invested $105 million, buying Bitcoin at an average price of $44,300 each. That investment has grown by over 50% and is worth around $166 million.

President Nayib Bukele was recently reelected in El Salvador. A major reason for this is his successful strategies to reduce crime and his innovative approach to cryptocurrencies. Specifically, he made Bitcoin a legally accepted currency in 2021.

A Reliable Option for Nigerians and Venezuelans

An article from the Foundation for Economic Education reveals a pattern where Nigerians and Venezuelans increasingly use Bitcoin to combat rampant hyperinflation. These nations depend heavily on oil exports and have financial management issues, and they view Bitcoin as a safe place to stash their money.

Many people view Bitcoin as a way to tackle economic problems in countries like Venezuela and Nigeria. They believe it can be embraced widely to protect individual finances, regardless of political beliefs.

Japanese Investors Eye Bitcoin

Japan’s government, led by Prime Minister Fumio Kishida, is positive toward Bitcoin. They’re considering making laws that make it easier for investment companies to include Bitcoin in their portfolios. It suggests Japan is open to new web technologies and may relax strict cryptocurrency rules.

Introduction of a German Crypto Exchange

Recently, Deutsche Boerse introduced a regulated crypto platform in Germany. At the same time, DZ Bank announced its intention to launch its crypto trading services in 2024.

Reports from mid-2023 indicate that Germany is viewing crypto investments positively, with many seeing it as a potentially profitable long-term project.

Coinbase Now Available in France

After receiving the required regulatory approvals earlier this year, Coinbase is getting ready to enter the French market. Also, President Macron is working towards making France a center for AI and blockchain technology.

VanEck Proposes Bitcoin ETF for Australian Market

Aussie investors eagerly await a spot Bitcoin ETF on the Australian Stock Exchange (ASX). The last obstacle is regulatory approval, as stated by the CEO of VanEck Australia.