Ill Bitcoin: it hit an all-time high of over $73,700 in March and has since traded in a range of roughly $59,000 to $72,000. After the deterioration of the inflation forecasts in the USA, today it decreases, falling to 61 thousand dollars. But digital currency is always on a treadmill, alternating periods of peak luxury with periods of absolute doldrums.
And analysts do not hold back from predicting future prospects. Thus, according to a report published by CCData, Bitcoin has not yet reached its current cycle high and is likely to surpass its all-time high this year.
Bitcoin: dal ciclo all’halving:
March’s journey to the record was largely driven by approval and launch ETF on Bitcoin in January in the USA. These funds have attracted approximately $14.41 billion in net inflows to date, according to CCData. ETFs allow investors to buy a product that tracks the price of Bitcoin without owning the cryptocurrency.
Proponents of the digital currency say this has helped add luster to the asset class and made it easier to attract large institutional investors.
But, the CCData report says, we haven’t seen the peak yet. A Bitcoin “cycle” refers to the period in which the digital currency rises to a new all-time high, then falls again and enters a bear market, or “crypto winter.” These cycles, three of which have ended since Bitcoin launched, tend to follow a similar pattern.
Recently there was an event called half or half cut in half during which miners’ wages are halved, reducing the supply of Bitcoin in the market.
L’cut in half It is an important event for the cryptocurrency sector and the financial landscape as a whole, as the reduction of the reward for mining leads to a decrease in the number of new bitcoins in circulation, which can increase the price of existing currencies.
Typically, halvings often happen a few months before Bitcoin hits an all-time high, but the current cycle has been different. Bitcoin hit a recent record high before being halved on the back of rising momentum in U.S.-based ETFs.
Is a new record coming?
For these reasons, as highlighted in a CCData report that examined historical bitcoin price movements, the cryptocurrency has yet to reach new highs.
The data and research firm said historical trends have shown that a halving event has always preceded a period of price expansion, which can last anywhere from 366 to 548 days “before producing a cycle top.” Bitcoin’s last halving happened on April 19th of this year, so these historic times are not over yet.
Ultimately, CCData suggests that the approval of Ethereum ETFs in the US will help increase demand for cryptocurrencies.