Bitcoin price has recently leveled out, while altcoins have been moving rapidly. BTC has shown an increase of over 23% since December 2021, surpassing the $52,000 mark for the first time. According to a report by Matrixport, 12% of this increase occurred during US trading hours.
Dynamics Influencing the Rise in Bitcoin Prices
According to the Matrixport report, other regions also significantly contributed to Bitcoin‘s rise this month. Europe accounted for 7%, and Asia for 4% of the increase in Bitcoin’s price. Reasons behind this rise include the US Securities and Exchange Commission’s approval of spot Bitcoin ETFs and the opening of doors for institutional investors to make billion-dollar entries. This led to a concentration of trading activities during US trading hours.
Interest in cryptocurrencies like Bitcoin is increasing among investors who want to diversify their portfolios in a macroeconomic environment characterized by persistent inflation, according to analysts. Jag Kooner, the Head of Derivatives at Bitfinex, suggests that expected macroeconomic challenges could enhance Bitcoin’s appeal as a safe haven.
Kooner notes that with inflation expected to remain above central banks’ target zones next year, there is an anticipation of prolonged high-interest rates. This could temper expectations for an early easing of monetary policies in developed markets, potentially leading to disappointment for some investors.
Bitcoin Halving Could Sustain Price Increase
The Matrixport report also points out factors such as modest earnings growth and various geopolitical risks. These factors could exert downward pressure on stock markets. Analysts predict only low-scale growth for 2024, suggesting that the S&P 500 could see modest earnings gains between 2% and 3%.
The Bitcoin halving event planned for April is seen as a positive catalyst that could further increase the price of Bitcoin, the flagship cryptocurrency, in the coming months. In light of these developments, investors are advised to closely monitor changes in the cryptocurrency markets and the global economy. As of writing this article, the Bitcoin price is trading at $51,300, with a daily downward movement of approximately $700.
