Bitcoin Hits $50k Again: Factors Driving the Surge and Predictions for 2024
Summary:
Bitcoin (BTC) surged to $50,000, contrasting sharply with conditions two years ago when it was about to enter a bear market. eToro market analyst Josh Gilbert said macroeconomic conditions are more favorable for Bitcoin now, citing upcoming rate cuts, Bitcoin halving, and inflows to Bitcoin ETFs. The popularity of Bitcoin ETFs and retail interest has noticeably grown, supporting the steady increment in Bitcoin's institutional buying rate. Amidst the tepid retail interest, Bitcoin could possibly reach $112,000 per coin in 2024, according to Ki Young Ju, CEO of CryptoQuant.
Monday's climb of Bitcoin (BTC) to $50,000 transpires amidst heightened institutional interest, a probable shift in interest rates, and the imminent scarcity due to Bitcoin halving. This significantly differs from the situation two years ago. Records reveal that Bitcoin last reached $50,000 in December 2021, when it was on the brink of a prolonged bear market, a phase unknown to most investors then. That period witnessed 11 consecutive interest rate hikes in the United States, the failing of several key crypto institutions and Bitcoin's value plummeting due to the withdrawal of retail investors from the crypto sphere.
eToro market analyst Josh Gilbert, in his conversation with Cointelegraph, pointed out that the current macroeconomic conditions are progressively favourable for risk-involved assets like Bitcoin. Gilbert highlighted the scheduled four or five markdowns by the Federal Reserve in 2024, the fourth Bitcoin halving that will augment its scarcity, and the continuing inflow into Bitcoin ETFs following the billions injected shortly after their launch.
The scheduled Bitcoin halving in April, a significant catalyst for many investors, refers to the halving of mining rewards for Bitcoin miners and is believed to positively impact BTC's price in the long run. Gilbert also noted a growing optimism related to Bitcoin ETFs performance, insinuating a consistent institutional purchasing of Bitcoin at an escalating pace.
A report from CoinShares on February 12 disclosed that spot Bitcoin ETFs had drawn in a total of $1.1 billion during the past week, seeing the most considerable seven-day inflow since their initiation on January 11. Retail interest, on the other hand, has remained tepid. Crypto market analyst Will Clemente believes that this could entail a more robust basis for growth in the broader market.
Google Trends data indicates that the search term "Bitcoin" stood at a score of 39 in December 2021 while currently being at just 19, implying a relatively minimal retail interest in the said asset. On February 11, Ki Young Ju, CEO of analytics platform CryptoQuant, projected Bitcoin could touch $112,000 per coin in 2024, driven by the performance of spot Bitcoin ETFs.
Published At
2/13/2024 5:37:30 AM
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