Bitcoin back at $50k: Where will the new growth end?


Bitcoin back at $50k: Bitcoin surges to $50,000 for the first time since December 2021, a stunning recovery from the crypto scandals and wipeouts that had raised doubts about the industry’s future.

Bitcoin back at $50k
Bitcoin surges at $50k since December 2021on ETF Demand. (Pics Credit-iStock Images)

 

The cryptocurrency market continues to rise at an astounding rate, surging more than 3.5% in 24 hours to $1.87 trillion. After breaking through its January top, the market has reached its highest level since April 2022.

Since Bitcoin’s inception more than a decade ago, one of the main draws for speculators has been its unpredictable price volatility. While initially pitched as an alternative to the old financial system, the recent increase has been fueled by hopes that last month’s US legalisation of spot Bitcoin exchange-traded funds will lead to broader public adoption.

Bitcoin has regained all of its losses since the implosion of stablecoin TerraUSD in May 2022, which kicked off a chain reaction of failures that eventually led to the collapse of Sam Bankman-Fried’s FTX exchange in November 2022.

By the time FTX went down, the crypto market had already been in decline for months, with hedge firm Three Arrows Capital and lender Celsius Network among those affected. However, the collapse of FTX, previously one of the top crypto exchanges by trading volume, was even more devastating, with token prices stagnating as liquidity dried up.

According to CoinShares, investment in crypto funds increased by a remarkable $1.116 billion last week, following inflows of $0.708 billion the previous week. Bitcoin investments have climbed by $1.089 billion, Ethereum by $17 million, Cardano by $6 million, and Solana by only $0.1 million.

Several on-chain indicators have reached the so-called “risk zone,” which may signify the start of a bull market, according to Glassnode. More substantial net inflows into spot bitcoin ETFs have fueled the market’s surge.

Bernstein, a well-known US investment bank, has predicted that Bitcoin’s value will more than triple, hitting $150,000 by 2025, adding to the excitement surrounding its recovery. Against the backdrop of renewed optimism and institutional embrace, industry leaders have expressed their support for Bitcoin’s present trajectory.

According to Grayscale, fundamental changes in the supply-demand balance, among other reasons, are likely to have a beneficial impact on bitcoin values following the halving.

According to a JPMorgan Bank survey, fewer and fewer large companies believe in the potential of blockchain, with the figure expected to drop to 7% by 2024.

Also Read: PM Modi to launch UPI services in Sri Lanka and Mauritius from today


Leave a Comment