The market leader in the cryptocurrency industry, Bitcoin, brought joy back to the investors and traders as the token rejuvenated its upward sentiment touching $60,000 again, a level last seen in December 2021. This stunning recovery has come after institutions continue to buy cryptocurrencies and as the global populace embrace blockchain technologies.
Several drivers have been seen encouraging BTC price increase as the most significant ones include the approval of spot Bitcoin ETFs by the US SEC early this year. They have also created avenues through which institutional investors can have exposure to Bitcoin without actually owning the Bitcoin, thus resulting in a flood of capital into the Bitcoin market.
Other traditional institutions have also been increasing their activity levels in the cryptocurrency sector with some of Wall Street’s large players such as JPMorgan Chase & Co and Goldman Sachs providing their clients with contracts linked to the Bitcoin futures. This backing has given credibility to bitcoin to an extent; hence boosting its price.
Also, current worldwide economic instability and inflationary trends have made investors seek refuge by investing in the cryptocurrency, beyond the traditional financial systems. Due to the predetermined number of coins at 21 million, the cryptocurrency has been described as the best bet to preserve wealth because of its protection from currency devaluation.
Now, systematical events like halving of the Bitcoins approximately every four years that slows down generation of new digital currency also help in creating a bull-run market. When the supply is cut and the demand is going up, it could be observed that in the periods after the halving the price will begin to rise.
Currently, the growth of Bitcoin’s price has further prompted the analysts to have aPERH divided opinion about the future volatility of this currency. Certain analysts shared their opinions on the cryptocurrency expecting it to achieve fresh record highs in the near future with $100,000 per coin. Some advocates suggest that it is overbought at the moment and thus could be due for a pull back.
Nonetheless, in the entire crypto space, there is a positive anticipation due to what the enthusiasts believe to be the beginning of a massive bull run in the value of BT. With even more institutions and retail investors getting involved in the market, its use cases keep on rising and becoming more involved in the global financial structure.
