Crypto-mania continues! Bitcoin scales new highs; Is $75,000 on the cards?
Bitcoin has been buzzing in the financial market for the last few weeks as the oldest and the largest crypto token scaled new highs on Thursday, hitting $73,750-mark for the session. Market watchers are expecting the crypto asset to race past $75,000-levels in the coming days on the back of rising euphoria.
Bitcoin has seen a massive rally in the recent days and weeks in Bitcoin on the back of increased institutional allocation, rising retail participation in Bitcoin ETFs and anticipated Bitcoin halving event. The rally has pushed bitcoin to moons, turning it into a multibagger asset in the various timeframes.
Bitcoin hit the $73,000 level gaining about 50 per cent over the past month and about 200 per cent in the past year. The positive momentum in the market is attributed to growing interest in Bitcoin spot ETFs and approaching Bitcoin halving event, which has historically impacted the price of Bitcoin, said Edul Patel, CEO at Mudrex
“There has been a steady rise of mainstream acceptance and investments from both retail and institutions since the Bitcoin spot ETF approval. Now that Bitcoin surpassed the $73,000 threshold, the next target is at the $76,000 level. BlackRock’s Bitcoin ETF has outpaced MicroStrategy in accumulating Bitcoins within just two months of its launch showing the increasing demand,” he said.
Bitcoin’s recent surge showcases its resilience and the mainstream acceptance of crypto. This surge is attributed to escalating institutional interest in the crypto space, said Sumit Gupta, co-founder at CoinDCX. “As the digital asset ecosystem continues to mature, we’re witnessing a notable shift in investor sentiment towards these virtual assets.”
There is an overall positivity in the crypto ecosystem. While Bitcoin ETFs have provided the initial push needed to kickstart a positive trajectory after more than two years of a crypto bear market, several important events are driving the market in the right direction, Gupta said.
The total global crypto market capitalization has inched up by one-fourth a per cent in the last 24 hours to $2.78 trillion, while the the total crypto market volume has increased more than 16.45 per cent to $133.74 billion, the data from Coinmarketcap suggest. Bitcoin’s dominance in the total crypto market is barely holding 52 per cent.
Liquidation of a lot of short positions in Bitcoin futures due to this rally also has meant that these short sellers have had to go into the market and buy Bitcoin to cover their positions, adding to the upward pressure on the Bitcoin prices, said Kumar Gaurav, Founder & CEO of Cashaa.
The dominance of Bitcoin has eased in the last few days, thanks to the sharp rise in select altcoins, including some memetokens which have rallied sharply amid the euphoria. Dogwifhat, Bonk anre Pepe are some tokens which have gained 20-40 per cent in the last 24 hours. Among the prominent names, Solana, Floki, Dogecoin, Fantom have rallied up to 13 per cent during the period.
However, not every expert is gung-ho over the secular rise in the crypto space. Some of them suggest that secular rallies in the short span of time warrant some caution and euphoria has spread to the altcoins as well. One should avoid any adventure in space and wait for pull backs for entry.
Bitcoin (BTC) continues its upward trajectory, hitting new all-time highs amidst swift buy-ups following each decline. However, analysts caution about a potential cooling phase ahead, pointing to BTC’s nearly doubled value since late January without substantial pullbacks, said Rajagopal Menon, VP at WazirX.
“The negative bearish divergence on the 4-hour RSI suggests a potential price decline. Additionally, the rise in meme coins’ value hints at a possible reversal, Traders are advised to monitor these levels closely for potential price shifts,” he cautioned.
