Bitcoin topped US$72,000 (RM337,320) for the first time recently. In 2024 alone, it has gained 70%. This is on the back of massive inflows into US exchange-traded funds (ETFs).
The original cryptocurrency rose as much as 4% to US$72,234 on 11 March 2024. Smaller tokens like Ether, Solana and Avalanche also advanced. The crypto gains came even as equities traded broadly lower ahead of a key report on US inflation.
The success of the crop of Bitcoin ETFs add to a range of bullish signals for crypto assets. Perhaps the most anticipated milestone is the quadrennial “halving” scheduled for April. A halving event refers to a period every few years when the reward for mining Bitcoin transactions is cut in half. As things stand, those validating Bitcoin transactions currently get 6.25 bitcoins, which could go down to 3.125.
Other technical indicators point to growing interest among both institutional and retail investors. Open interest on Chicago-based CME Group’s Bitcoin futures market has jumped 44% from this year’s low, while a rebound in the so-called funding rate signals that traders are increasingly willing to pay a premium for opening leveraged long positions in Bitcoin.
MicroStrategy Inc, the enterprise software firm that has made buying Bitcoin part of its corporate strategy, said it spent US$822 million purchasing more tokens from Feb 26 through March 10.
UK fintech firm Finder carried out a study based on expert price predictions of 40 crypto industry specialists on how Bitcoin is expected to perform through to 2030. Bitcoin, it found, is likely to hit an average peak price of $87,875 in 2024, with some experts predicting it will climb as high as $200,000. On the flip side, the average lowest price Bitcoin could hit by the end of 2024, is seen as $35,734, the report said, with some predicting it will fall as low as $20,000.
Cryptocurrencies are not regulated in the UK and there is no protection offered by the Financial Ombudsman or the Financial Services Compensation Scheme.
References:
Bitcoin tops US$72,000 for the first time as rally builds steam, Sidhartha Shukla, Bloomberg, 12 March 2024 / theedgemalaysia.com
Bitcoin price predictions: How much more could cryptocurrency rise in 2024? Doloresz Katanich, Euronews, 6 February 2024
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