Bitcoin price touched $68,280 on Tuesday, just a whiff away from its all-time record of $68,999, vaulting almost 10 percent in the last two trading sessions alone on the back of surging institutional investment ahead of the much expected halving of the digital currency.
The current bullish trend in the most dominant cryptocurrency has market experts and leading crypto players predicting its price could potentially reach $120,000-$140,000 in this bull cycle.
The surging investments in Bitcoin (BTC) has pushed up the total crypto market volume by a whopping $174.41 billion over the last 24 hours, taking the global cryptocurrency market cap to cross the milestone of $2.5 trillion, according to CoinMarketCap.
The rising investments in BTC has also led to pushed up its dominance to over 53 percent of the in the cryptocurrency market to over 53 percent on Tuesday.
“This [the current rally in BTC) has proven the resilience of decentralized assets and the value of decentralized ecosystems,” Gracy Chen, Managing Director of Bitget, a globally leading cryptocurrency exchange, told Arabian Business.
“Based on our analysis, Bitcoin could potentially reach $120,000-$140,000 in this bull market cycle,” she said.
Chen said from the recent data on Bitcoin investors, comparatively it seems they are less sensitive to price and generally see the halving event as bullish.
“So, if the Bitcoin ETF keeps seeing strong net inflows this week, chances are high that we will see several new all-time highs soon.”
Bitcoin to see strong rally
Market experts and players predicted the current rally in Bitcoin prices to continue with more vigour on a near-term basis “as the catalysts that brought its price to this point are still viable”.
“With massive inflows running into millions entering the market through spot Bitcoin ETFs daily, the supply crunch is real, and might fuel additional price hikes if demand is sustained from other sources,” Mohammed AlKaff AlHashmi, co-founder of HAQQ Network, told Arabian Business.
“Already, there is an imbalance in the average coin mined daily (approximately 900 BTC) and the volume being purchased through spot Bitcoin ETFs (approximately 10,000 BTC).
This imbalance will be compounded with the forthcoming Bitcoin halving event which will naturally see the emission of new BTC slashed from 6.25 BTC per block to 3.125 units,” he said.
Robert Quartly-Janeiro, the chief strategy officer at Bitrue, another leading crypto exchange, also echoed AlHashmi’s views, saying factors like Bitcoin’s limited supply and the halving, along with growth in institutional adoption via Bitcoin ETFs, will provide upward pressure [on its price].
He, however, cautioned investors to be on the watch.
“Macroeconomic headwinds, including rising interest rates and soft landing recessions, could dampen investor sentiment,” Quartly-Janeiro told Arabian Business.
“Bitcoin price movements in the coming months will be influenced by a complex interplay of bull and bearish factors. While reaching a new ATH (all time high) is highly likely, navigating this uncertain landscape requires careful consideration,” he said.
AlHashmi, however, pointed out that though the past trends show usually a drop in prices before Bitcoin halving events, followed by a significant increase afterward, these drops have been getting smaller over time.
“The largest drop was in 2012, and then less in 2016 and 2020. Considering the current state of the crypto world, I expect a small price drop of around 5 percent to 8 percent,” the co-founder of HAQQ Network, leading Shariah-compliant blockchain and digital currency network.
Ethereum holds strong amidst BTC surge
Industry players said the current bull run in BTC has also taken other leading cryptocurrencies along, with Ethereum, the second largest digital currency, breaking the $3,400 level.
“Though it (Ethereum) is yet to have a similar rally as Bitcoin, the digital currency is expected to hold these levels strongly until halving.
“ETH-spot ETFs could also send the second-largest crypto to new All-Time Highs,” Manhar Garegrat, Country Head- India & Global Partnerships at Liminal Custody Solutions, told Arabian Business.
He said the presence of a regulated Bitcoin ETF in the US has not only boosted the mass adoption of digital assets but has also acted as a solid template for other developing economies to leverage the true potential of digital assets.
“This just goes to show that investors are keen to invest, however they continue sitting on the fence as they await a nod from the authorities,” Garegrat said.
He said since the launch of the Bitcoin ETF last month, year-to-date inflows have surpassed over $5 billion.
“As always, we remain optimistic about the future of digital assets,” Garegrat said.
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