3 reasons why bitcoin could reach a new all-time high before the halving
After a significant decline after hitting its most recent all-time high, bitcoin's reputation has partially recovered in recent days. Forecasts from analysts suggest that the cryptocurrency may repeat the achievement and set a new record valuation. Based on the factors that we outline for you in this article, they expect it before the halving.
Despite the fact that bitcoin has gained traction again, economists predict that the currency will hit a new high by the halving for three reasons. First, open interest in bitcoin futures is at an all-time high.
The latter hit a record-breaking $37.81 billion. This suggests that there is more interest in bitcoin futures and increasing market activity. An increase that would imply a rise in business activity and investor confidence.
Second, the price of bitcoin may be greatly impacted by the influx of spot ETFs. Strong institutional demand is demonstrated by the $418 million in net inflows into spot Bitcoin ETFs as of March 26.
Not to mention, bitcoin has emerged as the leader of the present bullish cycle. Notably, according to Grayscale, bitcoin is driving the rise of altcoins. Not to add that elements that support the market's favourable dynamics include the rise in stablecoins and the decline in bitcoin balances on exchanges.
It must be acknowledged that the price of bitcoin encountered resistance above $71,000 and fluctuated around its initial peak of $69,000. Its price has increased by 0.68% during the past day to around $70,500.
These patterns lead us to the conclusion that cryptocurrency, with its weekly rise of about 5.33%, demonstrates some durability. An rise over the previous 30 days that works out to a rate of 21.96%
Bitcoin has increased dramatically since the year began. The cryptocurrency has, at the very least, exploded with its 157.68% growth. Its $41 billion in trading volume over the previous day, a sign of considerable activity on the market, is evidence of this.
In this scenario, investors are feeling upbeat as the much-anticipated halving event draws near. In general, a lot of people anticipate that bitcoin will reach a new price top before the arrival of this momentous occasion, which is currently being predicted in terms of days.