Can Bitcoin Surge Hold Strong at $60000 : Bitcoin surged over 5% to $63,649 by 9:30 am in New York, crossing the $60,000 milestone for the first time in over two years. The rally reflects growing optimism about Bitcoin’s appeal beyond its core enthusiasts, as reported by Bloomberg.
This surge marks a significant milestone for the cryptocurrency, which had last traded at $60,000 in November 2021, reaching an all-time high of nearly $69,000 the same month. Bloomberg notes that Bitcoin has already gained over 40% this year, driven in part by the successful launch of US ETFs that directly hold the token.
Factors Driving Bitcoin’s Rise:
Chris Newhouse, a DeFi analyst at Cumberland Labs, attributes the recent price surge to increased spot demand and momentum traders taking positions after a week of consolidation. Additionally, a projected reduction in Bitcoin’s supply growth is bolstering positive sentiment in the cryptocurrency market.
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Jonathon Miller, managing director of Kraken Australia digital-asset exchange, highlights the combined effect of spot BTC ETF inflows in the US, the upcoming reduction in new Bitcoin issuance (known as the halving), and renewed optimism around the crypto asset class.
Zaheer Ebtikar, founder of crypto fund Split Capital, points out a growing fear of missing out (FOMO) among investors, leading to increased buying activity.
Is the Bitcoin rally sustainable?
The sustainability of the Bitcoin rally is a topic of debate among experts. Some believe that the current rally is driven by several positive factors, such as increasing adoption, institutional interest, and macroeconomic uncertainty, which could support further price growth. Others caution that the market may be overheated, with high levels of leverage and speculative trading, which could lead to a sharp correction.
Factors such as regulatory developments, market sentiment, and macroeconomic conditions can also influence the sustainability of the rally. It’s essential for investors to carefully assess the risks and make informed decisions based on their risk tolerance and investment goals.
