Bitcoin monthly digest: October 2024

November's here, and with it comes the latest edition of our monthly Bitcoin digest from abitnewworld.com. This newsletter is your essential guide to staying updated on all things Bitcoin in just 5 minutes a month. Let's delve into what happened last month and discover the most recent trends in the Bitcoin ecosystem.

• Bitcoin's all-time high surge

In October 2024, Bitcoin soared to new heights, breaking its previous record by reaching $73620 - or €68660 - on October 29th (this record was already surpassed just a few minutes ago on November 10th, with a new high of $79734 (or €74360). Zooming out, it's been a magical year for Bitcoin's valuation so far. Was it just a fleeting spike? Why was 2024 so different compared to 2023? Amongst many other reasons:

1. Spot Bitcoin ETFs: The introduction of spot Bitcoin ETFs earlier in the year significantly boosted investor interest. These financial instruments made it easier for conventional investors to gain exposure to Bitcoin, tightening supply as ETFs like those from BlackRock and Grayscale bought up large quantities.

2. Seasonality: October, and more in general the last quarter of the year, are traditionally associated with positive movements in Bitcoin's price. This year, the upward trend was accentuated by the anticipation of U.S. elections, which often leads to shifts in investment strategies.

3. Halving Aftermath: The halving's impact on Bitcoin's inflation rate continued to resonate, reducing the new supply entering the market and contributing to the price increase through scarcity.

• UK pension fund Cartwright's investment

In a groundbreaking move for the UK financial sector, Cartwright, a multi-billion dollar pension fund, announced its allocation of 3% of its portfolio to Bitcoin in October 2024. This strategic investment marks a significant shift towards recognizing Bitcoin as a legitimate asset class within traditionally conservative pension funds. The decision to invest directly in Bitcoin, rather than through a proxy like an ETF. This allocation is part of a broader trend of institutional investors globally exploring digital assets to hedge against inflation and diversify their portfolios.

The move by Cartwright has sparked discussions across the financial community, potentially setting a precedent for other pension funds in the UK to follow suit in embracing innovative investment opportunities in the evolving economic landscape. This bold step not only diversifies their asset base but also positions Cartwright at the forefront of adopting emerging financial technologies, aiming to provide long-term value to its members.

• Bitcoin network achieves record hashrate

October marked a significant milestone in Bitcoin's mining landscape as the network's hashrate hit an all-time high of 769.8 EH/s on October 21st. This development enhances the network's security and makes it more resistant to potential attacks.

The record hashrate has been largely attributed to continuous improvements in mining hardware technology. Miners have invested heavily in more efficient and powerful ASICs, which have significantly increased the network's computational power. Despite the increased hashrate, most miners are facing profitability struggles. The halving event earlier in the year reduced block rewards, and while Bitcoin's price has risen, operational costs, particularly electricity, remain a significant concern for many smaller mining operations. There's a push within the mining community for more energy-efficient operations, with some miners already taking advantage renewable energy sources to reduce costs and environmental impact. This shift towards green mining could reshape the industry's future, making it more sustainable and potentially more acceptable in regions with stringent environmental regulations.

That's a wrap for now, folks! Don't be shy: get in touch with us by using the "Contact us!" button at the top of this page, or leave a comment down below with any questions or comments. We look forward to keeping you posted on the latest developments in Bitcoin-land. See you in a few weeks with our November updates!