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Bitcoin, the largest digital currency by market cap, was recently listed on trading platform Bitstamp for $47,613, up nearly five percent. It’s approaching $49,000, a multi-year high since January. Other digital stocks such as Ether have also been on the rise recently.
Crypto expert Timo Emden from Emden Research commented, “Investors can now set their sights on $50,000.” “Price dynamics show that a significant number of investors are now afraid of missing opportunities. “The bull market feeds the bull market.” Now the market can regain its momentum at the latest. But this also increases the risk of significant disruptions.
Turn to spot ETFs
In January, Bitcoin rose to $49,000 on expectations that the US would approve various spot ETFs (i.e. exchange-traded funds). Once approved by the Securities and Exchange Commission (SEC), investors took advantage of steep price increases in the previous months to cash in initially. In January, the price dropped below $39,000 before starting a comeback.
With approval, Bitcoin becomes accessible to a broader investor base. According to data from JPMorgan Bank, inflows into ETFs accelerated again at the end of this week.
“Halfing” in April
Investors are already waiting for the upcoming “Bitcoin Halving”. The event is expected to take place in mid-April 2024. As a result, the reward (in the form of Bitcoin) for computer-generated Bitcoin blocks will be halved. The move is intended to reduce the supply of new Bitcoin and therefore support demand.
This is the fourth halving in digital currency history. Such a step occurs every 210,000 blocks until the maximum number of 21 million Bitcoins is reached. (cut/SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
