Bitcoin has experienced a recent surge above $46,000, driven by steady inflows into various spot-based US funds and anticipation surrounding the upcoming halving event in April.
New spot Bitcoin ETFs have attracted significant interest, with substantial net inflows indicating strong investor demand. Notable funds like BlackRock and Fidelity’s ETFs have seen high levels of inflows, suggesting institutional interest in the cryptocurrency.
Historically, Bitcoin has seen positive price movements around Chinese New Year, with a notable rally of approximately 11%. This trend has occurred consistently over the past nine years, which could be a factor to consider in investment decisions.
Bitcoin’s performance against technical indicators, such as the 50-day moving average, is signaling a bullish trend, reducing concerns about major corrections. Additionally, achieving a weekly close above $44,000 could be seen as a bullish sign.
The upcoming halving event in April, which occurs every four years, is expected to reduce the reward given to miners for maintaining the security of the blockchain. This event historically has had a positive impact on Bitcoin’s price, as it reduces the supply of new coins entering circulation.
Some analysts and experts predict that Bitcoin could reach a peak of $88,000 in 2024, with expectations of a new record high six months following the halving event. However, it’s essential to note that these predictions are speculative and based on historical trends and market conditions.
When thinking about investing in Bitcoin or cryptocurrencies in 2024, carefully assess market trends, historical performance, technical indicators, and upcoming events like the halving.
Additionally, it’s crucial to understand the risks associated with investing in cryptocurrencies and to conduct thorough research before making any investment decisions.
