The cryptocurrency sector is witnessing significant movements, with Bitcoin standing out by recently surpassing the $52,000 threshold, a notable 23% spike since December 2021. Matrixport’s insights reveal that a substantial portion of this growth, specifically 12%, occurred during US market hours, indicating a pronounced trading activity in the region.
Global Contributions to Bitcoin’s Rally
The report further breaks down the contributions to Bitcoin’s price ascent, with Europe and Asia attributing to 7% and 4% of the upswing, respectively. The growth momentum is partly fueled by the US SEC’s green light for Bitcoin ETFs and the influx of institutional investments. These factors have led to an intensification of trades within US timings.
Amid inflation concerns, investors are increasingly turning to digital currencies like Bitcoin to diversify their portfolios. Bitfinex’s Derivatives Head, Jag Kooner, acknowledges that impending macroeconomic hurdles could bolster Bitcoin’s status as a haven asset.
Kooner points out the likelihood of sustained inflation that might result in persistently high interest rates, dampening hopes for a swift policy easing in advanced economies. Such a scenario may spell disappointment for some market participants.
Anticipated Bitcoin Halving Event to Bolster Price
The report mentions other variables, such as modest earnings growth and geopolitical tensions, which might suppress stock market performance. With analysts setting modest expectations for 2024, the S&P 500 might witness minimal earnings improvements. However, the upcoming Bitcoin halving in April is projected to act as a significant impetus for the cryptocurrency’s value. As a result, investors are encouraged to stay vigilant regarding shifts in the crypto landscape and broader economic indicators. Bitcoin’s current price stands at $51,300, with a minor daily decline.
