Exorays Experts reviews
Is Bitcoin Approaching an All-Time High?
by Exorays Experts
The most popular cryptocurrency has been on a tear this year, rallying almost doubling since the start of 2024. As of this writing, Bitcoin is just a few thousand dollars away from its all-time high set in November 2021. The recent upswing has left many wondering if this is just the beginning of a long crypto bull run that will finally see Bitcoin break into the six-figures.
Exorays Analysts point to four key catalysts driving the latest rally. First, a wave of new institutional money has flowed into the space in the form of spot Bitcoin ETFs. This week alone saw BlackRock’s ETF attract over $520 million in flows, which Bloomberg Senior ETF Analyst Eric Balchunas describes as the “biggest haul for a spot BTC ETF ever.” Second, there is growing mainstream acceptance of cryptocurrencies, largely driven by fears of inflation and global economic turmoil. Third, the upcoming halving of Bitcoin is likely to keep prices on an upward trajectory. This event, which occurs every four years, will reduce the amount of bitcoin miners receive for mining a block, from 6.25 coins to 3.125. This will increase the scarcity of bitcoin and is usually a strong driver for prices.
Fourth, the emergence of new stablecoins is also helping to push Bitcoin higher. Stablecoins are a type of digital currency that offer price stability, removing the risk of volatility associated with other assets like stocks and bonds. Several new stablecoins have emerged this year, including Tether, TrueBit, and Uniswap, which has seen its value surge over the past month.
The rally has also been bolstered by increased interest in blockchain technology. Investors are looking at how blockchains can be used in the financial sector and beyond. A recent report by Nasdaq found that interest in blockchains has grown nearly tenfold since last year. This is due in large part to the rising popularity of decentralized apps (dApps) based on Ethereum and other blockchains.
With all these factors in play, the future looks bright for cryptocurrencies. But before the rally continues to new all-time highs, there is some critical resistance to overcome. Bitcoin needs to overcome a psychological barrier in the $60K region before any further gains can be realized, according to technical analysis.
But while the current rally is likely to extend well into 2020, analysts caution against getting too carried away with expectations of a Bitcoin-fueled bull market. After all, it has only been about a year since the last major Bitcoin rally, and the asset could face a bear market in the near future if sentiment turns negative. However, with the launch of a spot Bitcoin ETF and increasing acceptance by mainstream investors, Bitcoin may have plenty of room to grow before the next major downturn.