BITCOIN ABOVE $70,000: Is This Rise Solid? | Exploring the Future of Cryptocurrencies
Exploring the Future of Cryptocurrencies
On Monday, the queen of cryptocurrencies exceeded the symbolic threshold of $50,000. A first in two years.
This has not happened for two years, bitcoin crossed the $70,000 mark on Monday, February 12. In November 2021, it reached its all-time high, at $69,000. But since then, the queen of cryptocurrencies has experienced complicated periods, particularly in the context of the “crypto winter” of 2022.
In 2023, it made a strong comeback, with a 150% increase on the back of investors’ hopes of the arrival of spot bitcoin ETFs in the United States. There, since the start of 2024, it has already increased by more than 22%.
With the authorization of spot bitcoin ETFs on the market on January 10, it had yo-yoed, notably due to sales by manager Grayscale which caused prices to fall. These sales have decreased significantly in recent days, which may explain the crossing of the $70,000 threshold.
Bitcoin halving | Is this increase solid?
One element could further push prices higher. Indeed, if in January we had the approval of bitcoin spot ETFs, there will be the halving of bitcoin in April.
This phenomenon, which takes place every four years, consists of the halving of the reward for its miners. In other words, there will be fewer new bitcoins put into circulation.
This phenomenon will reduce the supply of crypto in circulation and therefore mechanically, this should increase its price.
