Bitcoin’s recent price surge has been impressive, reaching an all-time high of US$71,438 (S$95,010) during Asian trading hours on Monday, March 11, 2024. This milestone follows a steady rise over the past few weeks, with the cryptocurrency crossing the US$70,000 mark for the first time a week earlier.
Several factors have contributed to bitcoin’s surge, including a flood of cash into new spot bitcoin exchange-traded funds and expectations that the Federal Reserve will cut interest rates. The last crypto bull run peaked on Nov. 10, 2021, when bitcoin reached US$68,990 (S$92,641).
Investors who bought bitcoin at its peak and held it through the latest bull run have seen an unrealized profit of about 2.5%. Meanwhile, those who bought in at the November 2022 trough have experienced more than 350% gains.
The upcoming halving event, which takes place roughly every four years or after 210,000 blocks have been “mined,” is another significant factor influencing bitcoin’s price. Halving reduces the rate of new coins entering circulation, creating scarcity, which is one of the key features of bitcoin.
However, there is no guarantee that a price increase will occur again, as bitcoin is sensitive to regulatory measures. While the scarcity driven by the halving event is expected to push bitcoin’s price higher, regulatory measures can also impact its value, making the future price trajectory uncertain.
In summary, bitcoin’s recent price surge has been driven by various factors, including new exchange-traded funds and expectations of interest rate cuts. The upcoming halving event is also expected to contribute to the cryptocurrency’s scarcity and potentially push its price higher. However, regulatory measures can impact bitcoin’s value, making its future price trajectory uncertain.