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Bitcoin (BTC) reaches a new all time high of over $69,200 for the first time since 2021 - why now?


By Bitpanda

Bitcoin (BTC) reaches a new all time high of over $69,200 for the first time since 2021 - why now?

Crypto enthusiasts have been following this story for months, and now the moment has finally arrived. Earlier, Bitcoin (BTC) reached a new all-time high of over $69,200 for the first time since 2021. But how is the market different now? And what could the rest of the year hold as we approach the Bitcoin Halving and beyond?

What's driving the market positivity? 

There are a few likely contributors to the recent increases in Bitcoin’s price:

  • Bitcoin Spot ETF approvals - At the tail end of January, crypto made a dramatic appearance on the main stage of finance. The crypto world reached an important milestone as major financial institutions received approval from the U.S. Securities and Exchange Commission (SEC) to launch spot Bitcoin ETFs. This landmark move has already started to revolutionise the landscape of digital assets, paving the way for institutional adoption and mainstream acceptance. Learn more.

  • The imminent Bitcoin Halving event - Like a blockchain based Olympics, the Bitcoin Halving arrives every four years and always delivers exciting developments within the market. If you’re not familiar, a Bitcoin halving is a provision within Bitcoin’s code that reduces the Bitcoin supply by half roughly every four years. This process reduces the number of new coins entering the network, which encourages scarcity and avoids devaluation. Historically, Bitcoin halving events have been associated with price increases for Bitcoin. The upcoming 2024 halving - expected in April this year - could potentially have a similar impact on the broader cryptocurrency market. While past performance is not indicative of future results, it's worth noting that following the 2012, 2016, and 2020 halvings, the price of Bitcoin rose by 8,024%, 287%, and 534%, respectively, in the year following each event. Learn more.

  • Changing cultural attitudes - Undoubtedly, the approval of Spot Bitcoin ETFs has had a positive impact not just on prices, but on the reputation of Bitcoin and the broader crypto market. Heavy hitters like BlackRock, VanEck and Greyscale getting involved in crypto lending and services helps validate the space, providing a sense that crypto is continuing to mature into a mainstream asset class. Maybe the conversations amongst your peers have changed, with previous naysayers starting to express a renewed interest in the world of crypto?

  • Regulatory clarity and technical trading factors - Governments are starting to provide more concrete rules and guardrails for crypto trading and activity, which can provide more confidence to both retail and institutional investors. Crypto prices appeared oversold heading into the recent rally. Technical traders likely saw the upside potential and jumped back in, helping propel prices higher.

  • Altcoins are also experiencing heightened interest - There has also been a recent increase in the price of many alternative cryptocurrencies (altcoins). This includes some well-known "memecoins" like Dogecoin, BONK, and Shiba Inu, which have experienced significant price increases. Additionally, cryptocurrencies associated with emerging sectors such as the metaverse, AI and Web3 have also seen growth. This upward trend in the altcoin market suggests a return of the risk-tolerant and profit-driven market sentiment that was prevalent during the 2021 bull run. However, it is important to exercise caution and select coins based on their inherent value and real-world applications, compared to those driven solely by hype.

What’s next for Bitcoin and the crypto market? 

If the positive sentiment continues, 2024 could be a year of significant growth for cryptocurrencies and blockchain technology as they gain traction with governments, banks, businesses, and consumers. This surge in adoption is likely fuelled by the potential of these technologies to bring greater stability, transparency, and accessibility to the burgeoning economic systems powered by crypto.

Along with a more mainstream adoption of crypto, we could see a growing focus on blockchain interoperability, a further convergence of traditional finance (TradFi) and decentralised finance (DeFi), as demonstrated by the recent partnerships between major financial institutions and Bitpanda Technology Solutions, and the continued evolution of the regulatory landscape. You can learn more about the potential future of Bitcoin and beyond here. Or start building your portfolio here


The information shared in this article does not constitute investment advice. Investing carries risks. Make sure to conduct your own research before concluding a transaction.