Last updated on May 18th, 2024 at 12:52 pm
Bitcoin is on an upward trajectory as its price surpasses the $52k mark on February 14. The recent level which signifies a 20% increase so far in 2024 has sparked excitement across the crypto ecosystem as anticipation for further price growth continues to brew.
The recent surge comes shortly after a price dip below $50,000 which was a result of the recently released US CPI data on February 13. However, investors have moved past the negative sentiment and are now portraying an even more bullish attitude towards the entire crypto market.
Bitcoin surpasses the $52k mark
Not only does this most recent spike represent a major turning point for Bitcoin, but the whole cryptocurrency ecosystem. The largest cryptocurrency asset has now officially achieved the coveted $1 trillion market valuation after 26 months, demonstrating its increasing popularity and acceptance by the general public.
What, though, is causing this newfound optimism? It appears that several things are increasing investors’ confidence. First, there is the optimistic outlook for Bitcoin, as many traders and analysts expect more price increases.
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In addition, options traders are especially bullish, speculating that Bitcoin price may hit $75,000 in the upcoming months.
Another major contributing factor has been the recent introduction of spot exchange-traded funds (ETFs) in the US. These exchange-traded funds (ETFs) draw in large inflows from institutional investors by exposing investors to Bitcoin without requiring them to own the cryptocurrency directly.
Since the approval of the spot Bitcoin ETF, a massive amount of money up to the tune of $9.5 billion has poured into the Bitcoin market. Reports show that indeed, these spot ETFs have been the source of almost 70% of fresh capital invested in Bitcoin over the last two weeks, demonstrating the increasing significance of these funds.
The third reason driving the price of BTC is the upcoming Bitcoin halving event which is expected to happen in April. During that time, the amount of Bitcoin in circulation will be reduced, thereby creating scarcity and potentially shooting the price of the token even further.
The halving event which takes place every four years cuts the reward of BTC miners in half. Over the years, Bitcoin has demonstrated a rally after a halving event and investors are hopeful that this year will be the same.
According to Coinstats data, Bitcoin is trading at $52,332 signifying a 1.37% increase over the last day.
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Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications such as Coinfomania and Crypto News Guru, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.