Bitcoin price hits fresh 2024 high amid record inflows
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The value of Bitcoin has reached its peak for the year thanks to an influx of investments pouring into the digital currency market.
Bitcoin's recent rally showed it surging past the $59,000 mark on Wednesday, bringing it within $10,000 of its all-time high from November 2021.
This is a significant change for bitcoin, considering that it was being sold for less than $20,000 only twelve months ago.
The cost leap was uplifted in January as the US gave the go-ahead for bitcoin spot exchange-traded funds (ETFs) for the first time ever. This resulted in billions of institutional dollars flooding into the market for the very first time.
This week, the cost increase happened at the same time as a historic trading day for Bitcoin spot ETFs. On Monday, nine recently introduced funds had their largest daily volume ever.
Several popular digital currencies have experienced considerable increases recently. For example, Ethereum (ETH) has surged by over 50% since the beginning of the year and has reached new highs for this year.
The surge in prices has caused the entire cryptocurrency market to reach a total value exceeding $2.2 trillion, which is twice as much as it was worth only half a year ago.
A number of professionals think that the halving event could trigger a surge in bitcoin's price, potentially revisiting its previous record high. In the next few weeks, this key occurrence is expected to occur, and it has been known to result in substantial price increases in the past.
Every four years, the bitcoin halving occurs as an integral component of the cryptocurrency's fundamental infrastructure. This event entails a 50% decrease in bitcoin mining rewards and is intended to serve as a deterrent to inflation.
Planned for April 19th, traders and investors are eagerly anticipating this day as it marks a significant point in the cycle of bitcoin's value which occurs every four years.
Paired with the spot ETFs, many predict that this happening will add to more increases in price in the upcoming months, until there is a chance of a potential price downturn.
Athena Miao, who is the chief commercial officer at the cryptocurrency exchange BigONE, believes that the halving event scheduled for April could exacerbate the shortage which institutional investment is driving.
Taking into account the upcoming bitcoin halving and the predicted economic climate in the US, which may involve interest rates lowering, experts estimate that bitcoin could exceed its previous record high of $69,000 before the halving. After the halving event, and with the support of favorable economic conditions, it is expected that bitcoin will reach the significant milestone of $100,000 by the end of the year.
