After weeks of directionless trading, the cryptocurrency market has embarked on an upward trajectory again. In addition to the CPI data showing a decrease in inflation figures in the US, optimism regarding the approval of spot Ethereum ETFs on Monday has significantly increased, sparking a widespread bullish movement in the market.
Expert Opinion on Bitcoin
According to the current Bitcoin price analysis, investors seem to expect a rise towards $100,000, supported by post-halving sentiment. Bloomberg ETF analysts, including Eric Balchunas, have increased the likelihood of Ethereum ETFs being approved from 25% to 75%. Due to the upcoming US elections later this year, some factors may be politicized to gain time by leveraging the crypto vote. The number of cryptocurrency holders in the US continues to grow, and such a move could influence their choice of candidates.
Following these developments, Ethereum’s value has significantly increased. This mirrors Bitcoin’s rise before the ETF approval on January 10. Ethereum closed at the critical $4,000 level but retracted to $3,785 while maintaining a 21% value increase within 24 hours.
Post-Halving Situation in Bitcoin
Bitcoin halving occurred in April, reducing the reward miners receive per blocked mining from 6.25 BTC to 3.125 BTC. This event, occurring in four-year cycles, is crucial for maintaining Bitcoin as a deflationary asset and ensuring the network’s continuity. The reduction of rewards and the number of new cryptocurrencies entering the market from 900 BTC to 450 BTC causes the existing supply to decrease over time. If demand remains the same or increases, it could create optimal conditions for a parabolic rally.
However, the effect of Bitcoin halving is usually experienced gradually, so the stagnation following the event in April and early May is also due to this. This could also mean that the long-term outlook is quite bullish, underscoring the $100,000 forecast for 2024. Last week’s increase continued on Monday, and the Bitcoin price rose to $72,000. The upward movement, supported by the buzz around the Ethereum ETF, spread across the market, raising the total cap to $2.66 trillion.
