Bitcoin rallies above $50,000 after 2 years. Here’s why
Bitcoin, the oldest and largest cryptocurrency, is rising in value again. Multiple macro factors, such as the anticipated rate cut by the US Federal Reserve and the growing popularity of Bitcoin ETFs, are expected to drive the market in the mid to long term, according to experts.
The total crypto market capitalisation has risen to $1.87 trillion with Bitcoin crossing $50,000 for the first time in 2 years. “As expected, Bitcoin soared to $50,000 after holding and breaking above the $49,000 support. On the other hand, Ethereum is trying to break the $2,700 resistance which might be successful when Bitcoin dominance decreases from the current 52%. There are approximately 60 days until the Bitcoin Halving in April 2024 which could potentially push the cryptocurrency market to new highs,” said Shivram Thakral, CEO of BuyUcoin, a digital asset exchange.
Historically, Bitcoin halvings are basically events that significantly reduce the Bitcoin supply and have always led to positive price action for Bitcoin, according to the expert.
“This time around, there is a heightened expectation from the halving due to the inception of Bitcoin spot ETFs which have increased the demand for Bitcoin as investments have surged to a volume of over $50B in barely a month since approval in Mid-January 2024,” said Manhar Garegrat, Country Head- India & Global Partnerships at Liminal Custody Solution.
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If this increased demand continues the Bitcoin halving could mark the beginning of a new bull run for digital assets pushing Bitcoin beyond any historic all-time highs. The presence of a regulated Bitcoin ETF in the US has not only boosted the mass adoption of digital assets but has also acted as a solid template for other developing economies to leverage the true potential of digital assets. This just goes to show that investors are keen to invest, however they continue sitting on the fence as they await a nod from the authorities, added Garegrat.
He explained, “As always, we remain optimistic about the future of digital assets and will continue to develop and participate in safe & regulated pathways for digital asset adoption.”
The presence of a regulated Bitcoin ETF in the US has not only boosted the mass adoption of digital assets but has also acted as a solid template for other developing economies to leverage the true potential of digital assets. This just goes to show that investors are keen to invest, however they continue sitting on the fence as they await a nod from the authorities.
