The price of bitcoin, the most famous cryptocurrency in the world, continues to rise. Due to several factors, this increase could well continue.
Bitcoin broke its absolute price record on March 5, 2024, exceeding the $69,000 mark for the first time. Despite an impressive drop in value immediately afterward, the cryptocurrency quickly recovered — and it appears to be doing better than ever.
After crossing the $70,000 mark during the weekend, a bitcoin was trading on Monday March 11, 2024 at around $71,500, thus breaking a new record. Impressive figures, which take the entire crypto-currency sector with them – and which could well last.
Bitcoin prices that could continue to rise
In 2021, when bitcoin set its previous record, at $68,789, the joy did not last, and the cryptocurrency began immediately after a very long descent. In a few months, its price had fallen by 50%. Bitcoin had also taken with it the entire cryptocurrency market, which fell very heavily in 2022 and during part of 2023. This period has been described as a bear market, a bear market very unsuitable for investments, and it only ended very recently, with the rise in the price of bitcoin.
The era that is dawning is that of the bull market — a market that is the opposite of the very optimistic bear market, and which should see the entire crypto-currency sector increase in value. We can already see that the new records for bitcoin have taken all the other cryptos with them: the entire market is on the rise and ether – the second crypto in terms of capitalization – is at 4,000 dollars, or two fingers to beat his absolute record.
But, the bull market is not the only one responsible for the good health of the crypto market. Three other factors are determining and are driving the entire sector:
- the arrival of bitcoin ETFs on the market: ETFs, or Exchange Traded Funds (exchange-traded funds, in French), are financial products that imitate the performance of other stock market assets. In the case of bitcoin, ETFs allow you to have the same returns, without having to buy cryptocurrencies. However, these ETFs, authorized by the American authorities at the start of 2024, are extremely popular. The demand for these funds is such that they have driven the entire price of bitcoin and their popularity does not appear to be decreasing.
- the upcoming arrival of halving: every four years, the halving of bitcoin shakes up the cryptocurrency. This is a time when the rewards granted to miners are halved, thus making bitcoins more rare, and mechanically increasing prices.
- market optimism: the last thing to consider is the good mood of the markets which generally rhymes with rising rates. This also applies to the crypto market, which is positive after the bear market. “ The mood in companies is much more positive than a year or two ago », noted the expert Claire Balva, a few weeks ago in an article in Numerama. Add to this rumors of an ECB interest rate cut (which generally means more investment) and the sector is decidedly optimistic.
With all this good news, it is not surprising that bitcoin is taking off so much and that its increase continues. Observers estimate that bitcoin could soon exceed $100,000 – a dream that has long seemed unattainable, but which could soon come true.
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