Fintech & Cryptocurrency

‘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, 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.

Read more: Compliance technology & expertise is becoming the answer to the cautious crypto community’s misgivings

“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 believers

Om 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.

Read more: Women & crypto: ‘In crypto, women have shown fierce attitudes & invested & built wealth riding the wave as & when needed’

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?

Navanwita Bora Sachdev

Navanwita is the editor of The Tech Panda who also frequently publishes stories in news outlets such as The Indian Express, Entrepreneur India, and The Business Standard

Recent Posts

PayalGaming becomes India’s first female gamer to win an international award

S8UL Esports, the Indian esports and gaming content organisation, won the ‘Mobile Organisation of the…

6 hours ago

Funding alert: Tech startups that raked in moolah this month

The Tech Panda takes a look at recent funding events in the tech ecosystem, seeking…

1 day ago

Colgate launches AI-powered personalized dental screenings

Colgate-Palmolive (India) Limited, the oral care brand, launched its Oral Health Movement. The AI-enabled initiative…

1 day ago

The role of ASR in voice bots: Revolutionizing customer interaction through real-time recognition

This fast-paced business world belongs to the forward thinking organisations that prioritise innovation and fully…

2 days ago

Disrupting Fintech: How product studios are transforming financial services

In the rapidly evolving financial technology landscape, innovative product studios are emerging as powerful catalysts…

1 week ago

Harnessing the power of AI: Preparing today’s workforce for tomorrow’s challenges

In an era defined by rapid technological advancement, Artificial Intelligence (AI) stands as a transformative…

1 week ago