FXStreet Insights Team
FXStreet
On Tuesday, Bitcoin surpassed its previous all-time high from November 2021, as it moved above the $69,000 mark. Economists at Deutsche Bank lay out five reasons why it is trading at a record high – and will stay high.
ETF spot Bitcoin record inflows
Demand for the new US spot Bitcoin ETFs has driven recent gains in Bitcoin prices. Since the SEC's approval on January 10th, nearly $7.9bn in funds have flowed into the new spot Bitcoin ETFs.
More ETFs are likely coming
The SEC's first decision on a spot Ethereum ETF application, one submitted by VanEck, is expected by May 23. ProShares has revealed its plans to launch five additional cryptocurrency ETFs, including one that would provide twice the daily exposure to a Bitcoin-tracking index. Overall, the evolving ETF landscape and participations of institutional players are helping crypto mature into a more established asset class.
The impending Bitcoin halving draws nearer
April 2024 will mark a significant event in the world of cryptocurrencies – the fourth Bitcoin halving is fast approaching. As the date draws nearer, much attention is focused on Bitcoin's typical price action surrounding previous halving events. In the 30 days prior to the November 2012 halving, prices rose by 5%. A more substantial 13% gain was seen ahead of the July 2016 event. Most recently, there was a sizable 27% price increase in the month before the May 2020 halving.
Economic winds of change signal smoother skies ahead
As central banks start cutting interest rates from the decade-high levels seen in 2022, this is expected to fuel rising risk appetite and increased market liquidity. More investors will likely seek out higher-yielding alternative assets as treasury returns decline. This flow of capital into non-traditional investment classes like cryptocurrencies could further support an ongoing rally in digital currency prices.
Regulation marches onwards
A clearer regulatory framework is expected to drive increased corporate adoption and higher liquidity (resulting in less concentration), and, ultimately, help address volatility. These factors, in turn, should contribute to an increase in Bitcoin prices.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.