Bitcoin Approaches Record High, Experts Predict $200,000 – Factors Driving the Surge
Bitcoin is edging closer to its all-time high of $69,000, and experts anticipate a trajectory towards $200,000. This surge is attributed to various factors, including increased trading in BTC funds and growing institutional adoption.
On Friday, BlackRock’s iShares Bitcoin Trust (IBIT) surpassed $10 billion in managed assets, experiencing a record influx of $612 million in a single day. According to renowned price analyst PlanB, BTC is on the verge of embarking on a massive bullish wave set to persist throughout the year.
Bitcoin Dominates Headlines Again
Bitcoin’s ascent towards its all-time high at $69,000 is capturing headlines once more. Cryptocurrencies, known for their volatility, are rapidly approaching this milestone, sparking expectations of further gains among investors and experts alike.
With BTC currently just a few thousand dollars away from its peak during the 2021 crypto bull market, experts remain optimistic about its future path, projecting a potential surge to $200,000. These bullish sentiments are fueled by various factors, including increased adoption, growing institutional interest, and macroeconomic trends, all contributing to Bitcoin’s upward momentum.
Bitcoin Trading in Six Figures
The recent surge in Bitcoin has brought it within striking distance of its all-time high, reaching $63,100 before a slight retreat on Friday afternoon. As of writing, BTC’s current value is $61,912.36, representing a 0.1% decrease in the past hour and a 0.1% increase compared to yesterday. Bitcoin has gained 21.3% in value over the past seven days.
The current global cryptocurrency market valuation is $2.45 trillion, reflecting a 2.22% change in the last 24 hours and a 117.74% change over the past year. BTC’s current valuation is $1.22 trillion, indicating a market share of 49.79%. Stablecoins hold a market value of $143 billion, constituting 5.87% of the total cryptocurrency market.
Bitcoin Nearing All-Time High
Bitcoin is currently just a few thousand dollars away from its all-time high of $69,044 achieved during the peak of the 2021 crypto bull market. Scientists anticipate that this rise could eventually push Bitcoin above the coveted six-figure threshold.
Institutional Support Boosts ETFs
Support from financial institutions for exchange-traded funds (ETFs), including BlackRock and Fidelity, has contributed to the influx of investors into cryptocurrencies. The ease with which individual investors can purchase Bitcoin and add exposure to their retirement accounts through ETFs has facilitated this movement and helped convince skeptics.
Institutional Adoption Drives Inflows
BlackRock’s iShares Bitcoin Trust (IBIT) exceeded $10 billion in managed assets on Friday, following a record flow of $612 million in a single day. As of now, Bitcoin inflows of $7.7 billion for this year surpass all inflows since 2021, during the currency’s peak, according to Bank of America Global Research’s Flow Show team.
The Halving Factor
Another contributing factor to Bitcoin’s recent surge is the anticipated “halving” scheduled for April, which will reduce the cryptocurrency’s issuance rate. This is achieved by halving the cryptocurrency rewards granted to miners who successfully validate Bitcoin transactions on the blockchain.
According to renowned price analyst PlanB, BTC is on the verge of initiating a massive bullish wave set to persist throughout the year. In a post on Friday, PlanB shared a chart illustrating the “market cycle” for BTC, indicating that the price is now emerging from the “accumulation phase.” He emphasized that there are “no more easy buying opportunities in organized and slowly rising markets.”
PlanB, who gained fame during Bitcoin’s bullish run in 2021 for accurately predicting multiple price movements, also introduced the “Bitcoin Stock-to-Flow Model.” This model predicts the future price of the asset based on its increasing scarcity, estimating a Bitcoin price of $532,000 by early 2026.
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When Bitcoin’s price dropped to less than $20,000 in 2022, PlanB’s model faced severe criticism for being overly optimistic. However, now that BTC has returned to over $60,000 per unit, PlanB insists that his model is sound. He wrote to X on Thursday, “Bitcoin closing price for February: $61,181… Back on track S2F model value.”
In conclusion, the recent surge in Bitcoin, fueled by institutional support, growing interest in ETFs, and the anticipation of the halving event, has positioned BTC for a potential push beyond the six-figure mark, drawing optimism from renowned analysts and the crypto community alike.
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