After $59,000, Bitcoin eyes new all-time high

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Bitcoin passed the $59,000 mark on Wednesday, with the CEO of a leading advisory and fintech predicting the benchmark crypto’s price hitting a new all-time high within weeks.

“If the current momentum continues, we expect that Bitcoin could beat the previous all-time high in a matter of weeks,” said deVere Group’s Nigel Green, as the pioneer of digital assets sailed through the historic milestone, edging closer to the previous all-time high of $69,000 on November 10, 2021.

“A key driver behind Bitcoin’s recent surge is the growing interest and involvement of institutional investors, notably through the introduction of Bitcoin Exchange-Traded Funds (ETFs),” said Green, a bullish crypto supporter.

“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 market, accelerating institutional adoption, and bringing more liquidity and stability to the sector.”

BlackRock’s Bitcoin ETF took in $520 mln on Tuesday – the second biggest inflow in a day of any ETF, while the approval of spot ETFs is viewed as a milestone in the journey of Bitcoin towards mainstream acceptance.

“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.”

Another factor contributing to the optimistic outlook for Bitcoin is the approaching halving event.

“Bitcoin undergoes a halving about every four years, reducing the rate at which new coins are created by half. The supply of new Bitcoin entering the market decreases, creating a potential supply shock that historically has correlated with significant price increases,” noted Green.

Next halving in April

The deVere CEO explained that the next Bitcoin halving is anticipated in April, and historical data suggests that these events often precede substantial bull runs.

“As the issuance of new Bitcoin slows down, the existing scarcity of the digital asset becomes even more pronounced, typically leading to increased demand and, subsequently, higher prices.”

Beyond institutional involvement and the halving hype, the surge in Bitcoin’s price is also being driven by increasing retail interest.

“The broader acceptance of cryptocurrencies, with major companies now accepting Bitcoin as a form of payment and traditional financial platforms integrating digital assets, is attracting a more diverse range of retail investors.

“User-friendly exchanges and mobile apps have made it easier than ever for retail investors to enter the cryptoverse, contributing to the democratisation of cryptocurrency investing. This combination of institutional and retail interest is creating a dynamic and robust ecosystem that could propel Bitcoin to new heights.”

However, Green concluded that nothing is for sure.

“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.”