Bitcoin at $59,000: Will this crypto rally mark the repeat of Nov 2021?
Jumping for the fifth consecutive day, bitcoin hit $59,000 on Wednesday in the global crypto markets. And if the current rally continues, this would be maiden cryptocurrency’s substantial monthly rally since Dec 2020.
In just one day, bitcoin rose 4.4 per cent reaching 59,259, its highest level since Dec 2021. At the same time, ether — another leading crypto — saw a 2.2 percent jump to $3,320 which is two-year high.
Bitcoin mania is primarily being led by growing institutional demand and overwhelming response of bitcoin ETFs. And what is adding to the rally is the forthcoming bitcoin halving event.
What industry spokespersons say?
The momentum built by institutional demand of bitcoin ETFs is being further strengthened by the upcoming bitcoin halving event scheduled in April 2024.
Rajagopal Menon, VP of WazirX, lauds the phenomenon of bitcoin ETFs. “Starting with investor protection to tax compliance for better monitoring of asset movement, ETFs would provide all benefits of Bitcoin ownership rewards sans the additional custody aspect,” he says.
Some industry spokespersons from Indian crypto ecosystem are so optimistic that they feel this rally could even surpass the previous one in Nov 2021 when bitcoin hit its highest ever level of $68,789.
“We can expect BTC to touch the $100,000 mark by the end of 2024 if macroeconomic factors remain favourable. The latest Bitcoin bull run which is mainly fuelled by the supply pressure due to heavy inflows to the Bitcoin ETFs has taken the Bitcoin to an all-time high in India. The current rally is expected to continue its upward trend well into the halving which is slated for April 2024.,” says Shivam Thakral, CEO of BuyUcoin
ALSO READ: Bitcoin rally: What is bitcoin halving that is seen responsible for the bull run?
Parth Chaturvedi, Investments Lead, CoinSwitch Ventures says that the crypto spring of 2024 has already arrived thanks to the overwhelming response of investors to bitcoin ETFs.
“We are already above the $59k level and inching towards the psychological $60k mark. Closer home, in INR terms BTC is trading above ₹51 lakh and is very close to its all-time high in INR terms, which was just shy of ₹55 lakh,” says Parth Chaturvedi, Investments Lead, CoinSwitch Ventures.
“After 2 long years of price correction, Crypto Spring has arrived early in 2024, as the spot BTC ETFs continue to gain investor interest and are the primary reason for the current surge in BTC prices. The spot ETFs have brought in a wave of institutional capital into the asset class and we are seeing strong inflows daily. Coupled with this demand surge, we are now less than 50 days away from the upcoming supply shock, in terms of the BTC halving which is scheduled to happen in April 2024,” he adds.
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Published: 28 Feb 2024, 05:26 PM IST
