What’s contributing to the upswing in Bitcoin's market value
Bitcoin rocketed past the $44000 mark signalling a substantial rebound. This upsurge caught many by surprise as just days prior, Bitcoin had sunk to below $42,000. Other cryptocurrencies including altcoins, like Ethereum and Solana, also experienced substantial recoveries.
The question everyone was asking was what the reason for the recent upswing was and now that Bitcoin had zoomed past estimates, could it continue its rapid rise or hold steady.
Many experts believe that this resurgence is driven to a large extent by the growing anticipation around the decision regarding spot Bitcoin ETFs of the SEC. Bitcoin has seen an extremely volatile start in 2024 with values changing dynamically from raging highs to depressing lows all within a matter of less than a week.
The latest data show Bitcoin having touched approximately $44,000, with its market capitalization crossing well over $860 billion. Not only has this positive shift been noticed in Bitcoin but values of altcoins like Ethereum, Ripple, and others have also risen significantly.
It is also important to factor in an event that takes place every four years, the halving of Bitcoin. This event serves to reduce the rewards of crypto miners and effectively limits the supply of Bitcoin.
The anticipation around the projected scarcity effect caused by the halving event drives up the price. Also, the anticipation around the upcoming halving of Bitcoin has significantly provided a boost to investor confidence which has also been key in driving up the price of Bitcoin.
With more than a dozen participants including companies like Grayscale and blue-chips like Blackrock vying to establish their ETFs, the Bitcoin ETF race is reaching fever pitch.
