Bitcoin (BTC) has defied expectations and surged past the crucial $66,000 mark, recording its most bullish weekly performance in recent times. This unexpected rally comes after the cryptocurrency successfully breached the $60,000 resistance zone on February 28th.
At the time of writing, BTC is trading at $67,145, with a relatively 1% price upsurge in the last 24 hours, according to CoinMarketCap. Its current price level shows that the flagship crypto will record a new price all-time high anytime soon.
Analysts initially anticipated a slight correction following the surge, but Bitcoin has continued its upward trend. Experts attribute this recent bullish run to two key factors: the introduction of spot Bitcoin ETFs and the approaching Bitcoin halving event.
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Spot Bitcoin ETFs Emerge as a Game Changer: Spot Bitcoin ETFs have emerged as a major game-changer, providing a secure and regulated avenue for institutional investors to enter the Bitcoin market.
This newfound accessibility has led to a significant increase in demand, with major players like BlackRock and Fidelity Investments accumulating over 300,000 BTC combined. The daily buying power of spot Bitcoin ETFs currently sits at a staggering 10,000 BTC, significantly surpassing the daily amount mined (approximately 900 BTC).
Industry veterans like Samson Mow believe this supply-demand imbalance has the potential to propel Bitcoin’s price toward $1 million. SkyBridge Capital Founder Anthony Scaramucci shares this sentiment, predicting a rapid acceleration in Bitcoin’s price if ETFs manage to acquire 10% of the total supply.
Bitcoin Halving: A Long-Term Catalyst: While spot Bitcoin ETFs serve as a major driving force in the short term, the upcoming Bitcoin halving event adds another layer of optimism for long-term growth. This event, scheduled to occur in the future, will effectively reduce the daily supply of new Bitcoins entering the market by cutting the block reward for mining Bitcoin in half.
Currently, miners receive 6.25 BTC for each block mined. Post-halving, this reward will be reduced to 3.125 BTC, resulting in a significant decrease in the daily issuance of new Bitcoins from 900 to 450.
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This fundamental shift in supply dynamics, coupled with the sustained demand from spot Bitcoin ETFs, is expected to create a scenario where demand significantly outstrips supply. This has the potential to drive the price of Bitcoin even higher in the long run.
With Bitcoin successfully surpassing the $66,000 mark, the next major hurdle lies in retesting its all-time high of $68,789.63. As Bitcoin enthusiasts watch this level closely, the combined forces of institutional adoption through spot Bitcoin ETFs and the looming halving event are poised to shape the future trajectory of the world’s leading cryptocurrency.
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