By
Steve Muchoki
April 19th, 2024
With Bitcoin trading above $55k, BTC market capitalization is comfortably above $1 trillion.
Bitcoin price is on the rise once again after a two-week correction. The asset is now headed to set a new all-time high, above $60,000. Notably, the rise is well cushioned by increased demand, particularly from institutional investors.
Moreover, the diminishing supply is working in favor of the Bitcoin price. Market data provided by CoinGecko indicates Bitcoin price jumped approximately 3.1% in the past 24-hours to trade around $55,573.78 at the time of writing. However, the asset rose to highs of $57,369.21, approximately $1000 shy of the all-time high set last month. Bitcoin price has traded above $55k for the second time, thus rejuvenating the bulls.
A further push beyond the current levels would imply a strong breakout towards the $60k level. However, if the bulls encounter stronger resistance and retrace back, traders and investors should brace for a further consolidation before continuing with the rally.
Market Perspective Affecting Bitcoin Price Correction and Growth
With Bitcoin trading above $55k, BTC market capitalization is comfortably above $1 trillion. Precisely, Bitcoin’s market capitalization stood at $1,037,118,600,206, with its past 24-hour trading volume at $59,653,225,471. Bitcoin still controls the largest portion of the entire crypto industry, whereby its dominance was around 58.8% closely followed by Ethereum with 11.8%.
Bitcoin price corrections are expected as the bull rally intensifies. According to Jay Hao, CEO of crypto exchange OKEx, Bitcoin pullbacks are to be experienced as we are still in the early stages of the bull rally. He further noted that most public institutions that are interested in putting the asset in their balance sheet need to justify more to their investors the need of having such a volatile asset. “Many more still consider that with its market cap below $1 trillion, it’s not yet a large enough asset class to invest in, others are put off by its volatility,” Hao explained to Cointelegraph.
According to Hao, more institutions are conducting due diligence before investing in Bitcoin. Therefore, more institutional investors are likely to hop into the crypto industry by the end of the year.
“We are seeing more institutional custodial solutions like BNY Mellon being developed but they will be coming later on in the year. It takes time. It’s not as simple for most institutions to simply decide to buy BTC like Michael Saylor. Most have to go through strenuous processes first and I think that is partly the reason for this pause,” he said.
Amid increased volatility in Bitcoin price, Canada now has launched another Bitcoin ETF. The first ETF to launch was from Purpose Investments on Feb. 18, and now Evolve Fund Group’s Bitcoin ETF was approved after meeting the requirements. Notably, the former has already surpassed $836 million in AUM, approximately 12,158 BTC.