- Bitcoin has pierced $60 000 for the first time since 2021.
- The token has become more accessible than ever to investors, thanks to an inclusion in Exchange-Traded Funds and new crypto mobile apps.
- This has caused a swell of positive sentiment that has investors rushing to grab the tokens as even higher prices are expected in April.
For the first time since 2021, Bitcoin has breached the $60 000 barrier and according to CoinMarketCap is sitting at around $62 983.33, as of the time of writing. Its latest gains, over $10 000 were recorded in just over seven days. This latest Bitcoin pump has sent investors into a frenzy as the only cryptocurrency that matters nears a new record high.
The 2024 Bitcoin price – how and why is this happening now?
According to Reuters, a surge in new spot Bitcoin exchange-traded products over February in the US fuelled the latest rally, which was further pumped by investors rushing to inject cash into listed Bitcoin funds.
In just over a month, the token saw 42 percent growth, almost beating its largest single-month gain since December 2020 when it saw its record high just below $70 000. The value of all Bitcoin currently in circulation has topped $2 trillion this month, the first time in two years it has seen this number.
In October last year, investors were swelling with excitement at the prospect of Bitcoin being included in exchange-traded funds (ETF). This type of fund would allow anyone on the fence about trading in the crypto markets some exposure to Bitcoin through the US stock market. Making the token more accessible to average investors.
The news that Bitcoin could be included in ETFs last year saw the token leap to a yearly high of over $34 000. It seems that these funds did indeed prove dividends for the cryptocurrency.
“The approval and launch of spot Bitcoin ETFs, which track the price of the cryptocurrency directly rather than futures contracts, have provided institutional investors with a more accessible and regulated means of entering the crypto market, accelerating institutional adoption, and bringing more liquidity and stability to the market,” said Nigel Green, CEO of financial advisory organisation deVere Group in an email to Hypertext.
“As more institutional players enter the space, the increased demand for Bitcoin has been driving prices higher. The influx of institutional capital also adds a layer of stability to the market, potentially mitigating some of the volatility traditionally associated with cryptocurrencies.”
“The next Bitcoin halving is anticipated in April, and historical data suggests that these events often precede substantial bull runs,” Green adds.
According to the deVere CEO, Bitcoin is on track to continue increasing in price on the back of accessible investments through ETFs and mobile apps like Luno and others. There is also a halving event occurring in April – something that happens every four years and usually leads to a surge in price. This too has investors rushing to adopt the token.
“Nothing is for sure, of course, and cryptocurrencies remain highly speculative, but the enormous interest in spot ETFs and the upcoming halving event – which only happens every four years – can be expected to continue to fuel the current momentum which could lead Bitcoin to surpass the $69,000 mark,” Green concludes.
[Image – Photo by Thought Catalog on Unsplash]
