Recent developments in cryptocurrency have placed Bitcoin in the spotlight, with several key milestones underscoring its growing influence and adoption in the global financial landscape. This caused an 18% surge in price from February 5, crossing a significant milestone of $50,000.
But with the price being in an overall 29% uptrend from its last low on January 23, can this positive sentiment lead to more gains?
Bitcoin has leapt to become the 10th largest asset globally, surpassing such giantsas Berkshire Hathaway, Tesla, and JPMorgan.
With its market capitalization nearing $1 trillion, Bitcoin’s price surge to $50,000 signifies its increasing prominence and acceptance as a major financial asset. This achievement places BTC alongside traditional and tech heavyweights in the global asset ranking, highlighting its significant market influence.
Spot Bitcoin Exchange-Traded Funds (ETFs) have witnessed unprecedented inflows, absorbing 12 times more BTC than the amount produced by miners over certain trading days.
Wall Street LOVES bitcoin.
They are buying up 12.5x more bitcoin per day than the network can produce.
The march to a new all-time high is underway if this continues.
I explain this on my segment with @SquawkCNBC this morning. pic.twitter.com/0zRc3RQ4hY
— Pomp 🌪 (@APompliano) February 12, 2024
The massive demand for Bitcoin ETFs, especially for major players like BlackRocks iShares Bitcoin Trust and Fidelitys Wise Origin Bitcoin Fund, underscores Wall Street’s growing appetite for Bitcoin.
This trend indicates a shift towards institutional adoption of Bitcoin. This should further solidify its position in investment portfolios and also indicate the lack of balance between demand and supply.
The optimistic market sentiment surrounding Bitcoin has been fueled by its robust performance and the potential impact of upcoming halving events. Influential figures in the crypto space, such as CryptoQuant CEO Ki Young Ju and crypto analyst Stockmoney Lizards, have made ambitious price projections, suggesting significant upside potential.
#Bitcoin could reach $112K this year driven by ETF inflows, worst-case $55K.https://t.co/HrkV3TU8Ul pic.twitter.com/jBn6HWpt9b
— Ki Young Ju (@ki_young_ju) February 11, 2024
The crypto’s recovery above the $50,000 mark supports this optimism. Now, it has stronger fundamentals compared to previous cycles and there is a confirmed bull market phase ahead.
For the first time in its history, #Bitcoin has broken the 0.618 retracement before the halving.
The strongest start to a new bull cycle, ever.
2 months to go until the halving event, this cycle will probably play out differently than the others. pic.twitter.com/fGlC0uEkp7
— Jelle (@CryptoJelleNL) February 13, 2024
Macroeconomic factors and heightened institutional interest also drive the bullish outlook for BTC. Approvals of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) and the anticipation of rate cuts by the US Federal Reserve are expected to make BTC investment even more attractive.
The upcoming halving, which could reduce its inflation rate, further propels Bitcoin’s appeal to investors.
BTC started a bull cycle on November 21, 2022, when it dipped below $16,000. Its price movements can be represented by five waves, and we are currently in the final one.
As Bitcoin is now over $50,000, the daily chart Relative Strength Index (RSI) has entered the overbought zone. This suggests that BTC will soon top out, but there is still more room to go. The next significant resistance is around $53,000, which makes that figure its next target.
Once the current rise ends, we can still expect the start of a significant retracement. However, where it will drop to will depend on the current uptrend ending price.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the authors opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.