Markets
Bitcoin flies to the $66,000 level, market capitalization reaches $1.309 trillion; Where are prices going?
Bitcoin prices showed resilience on Friday, reversing from the previous day’s decline. This recovery, combined with positive inflows into bitcoin exchange-traded funds (ETFs) for the fourth consecutive day, signals a promising trend for investors.
While Bitcoin was recovering, other crypto tokens, including Solana, Cardano, Polkadot and Avalanche, also showed strength, posting gains of up to 4%. However, the global cryptocurrency market capitalization saw a slight decline of 0.29%, reaching approximately $2.38 trillion in the past 24 hours.
The world’s largest cryptocurrency has remained firmly within a narrow trading range of $60,000 to $70,000 that has lasted for the past two months, encountering few triggers amid tepid risk appetite.
Read also: SEBI Recommends Regulators Oversee Crypto Trading, RBI Still Sees ‘Macro Risk’
Bitcoin is poised for a robust week amid rising hopes for US Fed rate cuts. After today’s surge, Bitcoin has made significant gains over the past seven days, rebounding from last week’s $60,000 low.
The cryptocurrency is up about 8% from last Friday’s lows, mainly driven by a weaker dollar and indications of easing inflation in the United States.
“Bitcoin rose above the $65,000 mark, showing a notable gain of 7% in 24 hours. In the past, such a leap would have attracted many newcomers to Web3. However, today’s landscape suggests that newcomers are looking for more than just price fluctuations. Maybe it’s time for the ecosystem to prioritize user-friendly applications. While pricing may attract investors, tangible use cases attract a broader audience,” said Nischal Shetty, co-founder of Shardeum.
Bitcoin’s market capitalization has risen to $1.309 trillion and its market dominance now stands at 54.69%, as reported by CoinMarketCap. During this period, BTC trading volume decreased by 27.4%, totaling $30.9 billion.
“Bitcoin is in the middle of a bull cycle. Its market capitalization is growing faster than its realized capitalization, a trend that typically lasts about two years. If this pattern continues, the bull cycle may end by April 2025. Another reason for the push could be the ETF inflows in May which have already offset the April outflows,” said Avinash Shekhar, co-founder and CEO of Pi42.
Read also: All ready for the return of Binance and Kucoin to India
Where are Bitcoin prices going?
According to market experts, in the short term, Bitcoin’s price trajectory could be influenced by technical indicators, market sentiment and actions of institutional investors.
Additionally, the appointment of former BlackRock executive Salim Ramji as Vanguard’s new CEO has sparked speculation that the investment giant may embrace cryptocurrencies.
“Analysts wonder whether Vanguard, under the guidance of an ETF veteran from crypto-friendly BlackRock, would finally turn bullish on Bitcoin. This surge also follows the revelation in 13F filings that 1,028 firms with over $100 million in assets under management collectively own $11 billion in Bitcoin as of March 2024, with Millennium Management emerging as the largest holder with $2 billion ,” said Rajagopal Menon, vice president of WazirX. Livemint.
Read also: Why Africa is the next frontier for cryptocurrencies.
Looking ahead, Bitcoin’s long-term prospects remain tied to its fundamentals, including its limited supply and growing adoption as a store of value and hedge against inflation, according to Siddhartha Gupta, SVP, Business and Strategic Alliances, CoinDCX.
“The approval of the ETF in the US and Hong Kong and the ETN in London has strengthened its legitimacy and price stability over time. However, it is critical that we remain aware of potential risks and uncertainties, including regulatory developments, technological advances and macroeconomic changes. While historical trends and halving cycles provide valuable information, the future trajectory of Bitcoin prices will likely be shaped by a complex interplay of factors, making precise predictions difficult,” said Gupta.
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