Bitcoin Blasts Pasts $60K, Are We Headed For Another Crypto Boom?
Bitcoin is on a tear this week, having initially rallied to above $53,000 on Monday, the highest it has been since November 2021. That's also well above the less than $17,000 mark that it was sitting at to begin the year. Now just two days later, Bitcoin's value has surged past the $60,000 mark and is quickly approaching the crypto coin's all-time high of $69,000 and change, which it also set in November 2021. It's quite the different situation than a little over a year ago, when Bitcoin was barely trading above $15,000. What's causing the sudden rush?
The cryptocurrency market has always been volatile, and this latest sudden spike is another example that trait. Despite heavy volatility, Bitcoin has been the most consistent form of cryptocurrency when stretched out over time. It's obviously not immune to peaks and valleys, but it has proven resilient in the long term in a market that, for many, is very much uncertain.
There are likely multiple reasons behind Bitcoin's latest rally. A halving event is estimated to occur around the middle of April, according to the countdown clock at Watcher.guru, and it's not unusual for trading activity to spike ahead of these events. A halving event is when rewards for mining new blocks gets slashed in half, and it takes place around every four years.
Source: CoinDesk
"If $60,000 doesn’t whet the appetite, consider that 70% of Bitcoin supply has remained unmoved for a year, and the little that’s left is being hoovered up by the likes of BlackRock and Fidelity, just as rewards for miners are about to be slashed in half. The stars are aligning for Bitcoin," said Antoni Trenchev, co-founder of Nexo crypto exchange, in a statement to Reuters.
The halving event is likely the biggest reason why Bitcoin is booming again, though it's not the only one. It also seems there's a bit of FOMO (fear of missing out) at play. Those who sat on the sidelines of Bitcoin's past surges may be extra motivated to ride the current wave, so as not to miss out a second or third (or whatever) time.
It will be interesting to see if Bitcoin sets a new all-time high in the coming days and weeks. Likewise, as Bitcoin goes, so does the entire cryptocurrency market, it often seems. For example, Ethereum is climbing too and currently sits at $3,364, which is up for 43% for the year so far. Binance Coin (up 31.58% from the beginning of 2024) and several others are showing recent upwards movement as well, including meme coins like Dogecoin and Shiba Inu. Whether the momentum carries through to mid-Apri an beyond, we'll have to wait and see.
