Bitcoin, the world’s most popular cryptocurrency has crossed the US$29,000 mark, and everyone is thrilled. This milestone has been achieved after a period of steady growth and marks a new all-time high for Bitcoin.
Om Malviya, President at Tezos India, a blockchain adoption entity, told The Tech Panda that the reason for the latest rally is Bitcoin halving event due in May 2024.
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“Bitcoin, the world’s largest digital asset is again trading above the $28,000 level due to highly volatile macroeconomic conditions in major economies like US and UK. Bitcoin is struggling to find firm support at the $28,000 level but BTC dominance is at 9 months high at 46.36%, which shows that Bitcoin is attracting smart money and Defi believers.
“One of the reasons for the latest Bitcoin rally is Bitcoin halving which is due in May 2024. As we approach the mega crypto event (BTC halving), we can expect wild swings in the BTC prices, if we go by historical evidence.”
Bitcoin is struggling to find firm support at the $28,000 level but BTC dominance is at 9 months high at 46.36%, which shows that Bitcoin is attracting smart money and Defi believersOm Malviya, President at Tezos India
The next Bitcoin halving is expected some time in April or May 2024, when the number of blocks hits 740,000. It will see the block reward fall from 6.25 to 3.125 bitcoins. The exact date of the halving is still unknown since the time to generate new blocks differs, with the network averaging one block every ten minutes.
He adds that it’s significant that Bitcoin is down by over 65% from its all-time high of US$69,000 in November 2021.
“The overall crypto market cap is up by 4.32% and stands at the US$1.18 trillion mark with BTC and ETH leading the effort,” he concludes.
The current global recession is also touted as a reason leading to the current surge in Bitcoin prices. CNBC noted in January that Bitcoin’s price has doubled in three months. Institutional investors have been increasingly turning to Bitcoin as a hedge against inflation and global economic uncertainty. Moreover, certain investors are looking at Bitcoin as a more stable alternative to traditional fiat currencies in these recession times.
According to Forbes, Bitcoin has been on a bullish run in the past weeks. The digital asset has been climbing in value, with experts projecting that it’s likely to touch the US$50,000 mark in the near future. The recent price surge has been attributed to several reasons, which includes its high adoption among mainstream investors, expanding institutional interest, and the pandemic.
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Other reasons attributed by news agencies like Bloomberg are increased adoption by institutional investors, growing interest from retail investors, and the ongoing pandemic. CoinDesk revealed that Bitcoin’s recent price surge comes with a surge in trading volume, indicating a strong demand for the digital asset.
It seems ironic that while the world is whining about inflation, digital assets start going up. Is Bitcoin headed for greater heights in the near future? And will recession be the prime reason for it?