Bitcoin (BTC) traded above $50,000 today for the first time in a long time. Not since the end of 2021 has Bitcoin traded above this key mark – topping $64000 – its all time high.
Bitcoin is the most popular crypto and the only one the Securities and Exchange Commission has affirmed is NOT a security (while everything else is probably a security – according to the current Commission). Bitcoin started the year at over $44,000, so it has generated a bit over a 10% return if you bought it on January 1st.
Alex Adelman, CEO and Founder of Bitcoin rewards app Lolli, believes BTC will maintain its momentum in 2024.
“Bitcoin’s winning streak since the start of the year shows that increased mainstream demand, especially from bitcoin ETFs, will continue to drive strong upward price momentum. The biggest financial firms in the world are now actively buying bitcoin to cover record-breaking inflows for bitcoin ETFs, providing new sustained tailwinds for Bitcoin. Bitcoin ETFs have seen historical success in just one month of trading. As more leading institutions launch Bitcoin ETFs and other bitcoin-based financial products, the resulting upward price moves will also drive more direct investments in bitcoin from mainstream investors. There are only 21 million bitcoin that will ever exist; Bitcoin’s fixed supply means surging supply will keep driving its price up.”
Adelman noted that the next Halving is nearing, which should help fuel Bitcoin’s price increases while predicting a record-breaking year and new all-time highs.
Bitfinex analysts concur with Adelman, declaring an “exceptionally bullish picture” for BTC. Bitfinex also claims this is an early stage of a bull market:
“These indicators suggest that the long-term trajectory for the year should see prices trending upwards.”
Demand from the various ETFs is boosting interest while the Halving impacts the supply side. The big question is what sort of other variables will impact the price of Bitcoin. Inflation? Geopolitical strife? Other markets? If anything, Bitcoin has proven to be a volatile asset class rewarding longs when the bull arrives and punishing them when the bear shows up.