Bitcoin continued to exhibit strength towards the weekend, pushing as high as $30,100 on Friday noon before recoiling slightly later in the day.
Notably, the remarkable rally came just hours after the U.S. Securities and Exchange Commission (SEC) unexpectedly dropped all charges against Ripple executives Brad Garlinghouse and Chris Larsen on Thursday. This unexpected turn of events injected an air of optimism into the cryptocurrency market with several other major cryptocurrencies also displaying impressive strength on Friday.
Over the past 24 hours, Ethereum, XRP, Cardano, Solana, and other altcoins surged, with increases ranging from 2% to 10%, demonstrating the resurgence of the broader cryptocurrency market.
That said, amid this broad rally, Bitcoin has continued to enjoy notable support, both fundamentally and technically, signalling the potential for further upward momentum.
Notably, all week long, experts have been predicting a strong chance that a Bitcoin spot ETF may receive approval within the next few months, with Bloomberg analysts predicting a 90% chance of approval by early next year. According to popular crypto analyst Miles Deutscher, this development would allow investors to access Bitcoin through the stock market, providing a new way for traditional investors, such as pension funds, to invest in Bitcoin.
“A spot ETF approval would no doubt influence the amount of net flows coming into the Bitcoin ecosystem which could result in more people holding Bitcoin thus driving the price up,” Deutscher stated in a video recording today.
Secondly, pundits have also been counting on Bitcoin’s halving event, slated for April 2024. The event, which reduces the rate at which new bitcoins are created, has been a well-known catalyst for price surges. Previous halving events have led to significant price increases approximately 240 to 250 days after halving. Although Bitcoin’s latest halving occurred in 2020, history suggests that the cryptocurrency might experience another surge around 2025.
Additionally, experts have highlighted the recent approval of rules for accounting for the fair value of companies’ cryptocurrency holdings as a game-changer. The rules will allow companies to more accurately report their cryptocurrency holdings in a tax-efficient manner, which could, in turn, encourage institutional adoption.
Furthermore, many have increasingly seen Bitcoin as a flight for safety for geopolitical black swan events. Bitcoin’s digital nature, borderlessness, and ability to withstand economic crises make it an attractive asset during times of geopolitical uncertainty. Recent examples of Bitcoin rising exponentially, such as during the pandemic in 2020 and against currencies in countries facing economic instability, underscore its potential as a flight to safety asset.
Bitcoin was trading at $29,468 at press time after a 3.84% surge over the past 24 hours. Notably, the pioneer cryptocurrency’s value has grown just over 10% in value in the past 7 days.
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