Bitcoin Nears All-Time High, Sets New Records Against Global Currencies Amid Inflation Fears
Summary:
Bitcoin's value has recently hit a two-year high of $59,485, closely approaching its all-time peak of $68,789. The cryptocurrency has been setting new records against multiple global currencies due to the weakening market value of these fiat systems, indicative of inflation. With the Bitcoin halving just 49 days away, market analysts are expecting a surge in Bitcoin's price, driven largely by institutional players, particularly influenced by the inflow to Exchange-Traded Funds (ETFs). Currently, Bitcoin is trading at $59,400, up 5% from the last 24 hours.
On February 28th, Bitcoin surged past $59,000 to reach a new high of $59,485 in two years, narrowing its gap from its peak historical price of $68,789 by just 13%. Bitcoin's price is inching closer to its all-time-high, and has already established new record highs against various fiat currencies. Bitcoin's record-breaking performance has been observed against multiple currencies, including the Japanese yen, Malaysian ringgit, Indian rupee, Taiwan dollar, South Korean won, Chilean peso, Australian dollar, Chinese yuan, South African rand, Norwegian krone and Turkish lira.
These new accomplishments of Bitcoin against these particular currencies are reflective of the weakened market value of these fiat systems, hinting at inflation. Inflation denotes the degradation of the purchasing power of a currency over time. Analysts opine that Bitcoin is exploring uncharted price territories after crossing the vital resistance of $57,000. The impending halving of Bitcoin, just 49 days away, could further fuel its bullish course, potentially driving the cryptocurrency to new height, as historically witnessed.
Historically, Bitcoin's value has witnessed an escalating trend, increasing by at least 270% post-each halving event. For instance, Bitcoin’s valuation prior to the 2012 halving was $12, which escalated to $964 a year later. Similarly, in 2016, Bitcoin priced at $663 before halving, surged to $2,500 within a year. Likewise, the 2020 halving saw pre-halving Bitcoin value at $8,500 that catapulted to $68,783 within a year.
The ascendant cycle of Bitcoin is steered by different factors at different times. Back in 2017, the retail sector propelled Bitcoin's surge to $17,000, while in 2021, the advent of institutional players drove Bitcoin up to $69,000. In the current year, financial experts attribute the rising tide in Bitcoin to the institutional sphere, citing the daily net inflows of the Exchange-Traded Fund (ETF) as evidence.
Bitcoin ETFs are witnessing nearly half a billion inflows daily, whereas the amount of new Bitcoin added to the market is almost a tenth of the existing on-demand Bitcoin ETF. Given the rich institutional interest amid constricting supply, anticipated to be halved in the ensuing 50 days, analysts predict a potential boost for Bitcoin’s value post-halving.
Currently, Bitcoin is trading at $59,400, marking a 5% increase over the past 24 hours.
Published At
2/28/2024 2:54:41 PM
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