Excitement, institutional buying demand, and historic gains related to Bitcoin (Bitcoin) Some traders say the halving event is putting the asset on track to surpass March’s lifetime high of $69,000.
Bitcoin halvings have always been associated with bull markets, with asset prices increasing by hundreds of percent in the months following previous events. Halvings occur approximately every four years and reduce block rewards to miners. The next halving is expected in mid-April. countdown clock indicates.
As long as demand remains constant or increases, the price will tend to rise as there are fewer new Bitcoins on the open market. While historic price movements may not be repeated in the future, expectations of upside may prompt investors to place large bets on the asset.
“Expectation always leads to increased purchasing activity, or for lack of a better word, ‘FOMO,’” Hectic Labs CEO Brian Legend told CoinDesk in a Telegram message. “Investors are expecting prices to rise due to reduced supply and the pre-halving rally contributing to a new bull market with renewed bullish sentiment.”
“But the upswing leading up to the actual halving is the best time to realize short-term gains,” Legend added.
Meanwhile, some traders expect Bitcoin to surpass a lifetime high of $69,000 in March, driven by institutional demand and the early success of spot Bitcoin exchange-traded funds (ETFs). is likely to push up prices.
“With 54 days remaining until Bitcoin’s halving and expectations that the Fed will cut interest rates mid-year, Bitcoin price has reached a support level of $50,000 and will reach historic highs in March. “There is a possibility that it will fluctuate in the direction that it reaches,” said chief analyst Ryan Lee. Bitget Research told CoinDesk in a message.
“The trading volume of nine US Bitcoin ETFs also reached a new high of $3.2 billion last week, indicating strong bullish sentiment among financial institutions,” Lee added.
Bitcoin ETFs traded a total of $2 billion on Tuesday. Blackrock IBIT Recorded over $1.3 billion Daily trading volume increased for the second consecutive day.
By morning Asian time on Wednesday, Bitcoin was trading just above $57,200, up 1.5% in the past 24 hours.of CD20the broad index rose nearly 1%.
