Bitcoin Touches USD 50,000 for the First Time Since 2021, a Step Closer to USD 100,000 While Bitcoin bounced back, having its value tripled since the beginning of 2023, it still falls below an all-time high of about USD 69,000 it achieved in November 2021
By Paromita Gupta •
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Bitcoin, the largest cryptocurrency in terms of market capitalization, on Tuesday, crossed a mark of USD 50,000, something it last did in December 2021.
Upon U.S. SEC's approval of BTC EFTs on January 11, the crypto coin crossed the USD 45,000 mark.
Bitcoin trading volume grew from USD 16B to USD 50B between January 1 to 11 (prior to the approval). The price upsurge can be credited to factors such as U.S. SEC Bitcoin ETF approval, the upcoming fourth BTC halving, quality projects beig built on the Bitcoin ecosystem, and the impending Federal Reserve's interest rate cut.
While Bitcoin bounced back, having its value tripled since the beginning of 2023, it still falls below an all-time high of about USD 69,000 it achieved in November 2021. "We do anticipate pullbacks along the way to the next big target of $69,000 — its all-time high. Beyond that, we enter uncharted territory with price discovery, where the dynamics of supply and demand in a reduced supply environment post-halving could fuel a significant uptrend," shares Vikram Subburaj, CEO, Giottus Crypto Platform.
"There was a short-term decline after the adoption of the Bitcoin ETF. This was due to the switching of positions by some holders of Grayscale and the selling of some equity holders. As the grayscale sell-off came to an end, the overall Bitcoin ETF market began to see daily net inflows in and out, and this rhythm is still maintained. BlackRock, for example, has opened its own sales network to sell Bitcoin ETFs," shares Ryan Lee, Chief Analyst at Bitget Research.
Shivam Thakral, CEO, BuyUcoin is optimistic about a further hike, "There are approximately 60 days until the Bitcoin Halving in April 2024 which could potentially push the Cryptocurrency market to new highs." Concurs Edul Patel, CEO, Mudrex "The prevailing positive investor sentiment manifests in an active bullish presence in the market."
At the time of publishing, the Bitcoin price stood at USD 50081.90.
Reportedly, Standard Chartered Bank experts and analysts have projected the crypto coin to touch USD 100,000 by the year-end. Subburaj feels the milestone can be achieved in next 12-18 months.
