By
Godfrey Benjamin
May 10th, 2024
Bitcoin price has registered more bullish sentiments before halving this cycle than any other in the past.
The first time Bitcoin (BTC) price climbed above $50,000 was during the 2021 crypto bull market, which was close to the peak. More than two years later, Bitcoin price has now rallied above $50k again, but with stronger fundamentals to help push further in the near future. The flagship coin has become a hot topic on Wall Street among top-tier fund managers and around the world among most investors.
As a result, the demand for the mother coin has skyrocketed and significantly outweighed the daily supply from Bitcoin miners. With the fourth Bitcoin halving about 67 days from taking place, experts believe more gains are yet to be booked in the confirmed bull cycle.
Factors Propelling Bitcoin Price to New Heights
The Bitcoin and entire digital asset space opened the year on a bullish note fueled by the heightened demand from institutional investors. Mid January, the United States Securities and Exchange Commission (SEC) approved the listing and trading of several spot Bitcoin exchange-traded funds (ETFs). Notably, the dozen spot Bitcoin ETF issuers buy and hold actual Bitcoins, which makes it different from the futures ETPs approval. Most experts believe Bitcoin price will closely mirror that of Gold after the 2004 spot ETF approval in the United States.
The ongoing Bitcoin bullish outlook is well bolstered by the high demand from whale investors around the world. With El Salvador and the Central African Republic already using Bitcoin as legal tender, more deep-pocketed investors have been accumulating the flagship coin. Furthermore, the United States Federal Reserve is expected to conduct several rate cuts this year, which will ultimately make Bitcoin investment more attractive.
The last time #BTC was at $50,000:
– >50% of supply held by lettuce hands
– Terra/Luna running ponzi
– FTX selling paper BTC
– GBTC premium buyers getting rekt
– Precipice of fastest rate hike in history
– Super Bowl "crypto" ads#BTC at $50,000 today:
– 70% of supply held by… pic.twitter.com/yL4ZdiFyzJ— Mitchell 🇺🇸🚀 (@MitchellHODL) February 12, 2024
Generally, the Bitcoin industry has registered a notable bullish outlook based on the fact that the upcoming halving will reduce its annual inflation from the current 1.69 percent to 0.84 percent after the halving. With most central banks from countries around the world struggling to tame the high fiat inflation, more investors are designating their portfolios into Bitcoin and other digital assets. According to a weekly report from CoinShares, the United States led in cash inflows to crypto investment products last week with around $1.1 billion. Other notable nations that recorded sizable crypto investments last week included Switzerland, Sweden, Germany, and Canada.
For the first time in its history, #Bitcoin has broken the 0.618 retracement before the halving.
The strongest start to a new bull cycle, ever.
2 months to go until the halving event, this cycle will probably play out differently than the others. pic.twitter.com/fGlC0uEkp7
— Jelle (@CryptoJelleNL) February 13, 2024
Bitcoin price has registered more bullish sentiments before halving this cycle than any other in the past. Interestingly, Bitcoin price hascrossed the 0.618 Fibonacci Retracement after the halving, but the flagship coin has already crossed the level. As a result, Bitcoin price needs to consistently close above $50k in the coming weeks to invalidate a possible reversal toward the support range between $32k and $38k.