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Bitcoin Hits $60,000: What's Next for The Crypto Market?

01 March 2024 13:40, UTC

The last few days have been some of the best for crypto market participants and investors. Bitcoin has been on a relatively positive trajectory over the past months, but it got even better when it crossed the $60,000 mark on the 28th of February, 2024. The snowball effect Bitcoin always has on altcoins is one thing that ever goes out of notice. Aside from the apparent increase in investors’ portfolios, this pump could bring many more likely events to other tokens and projects in the market. Here is an overall outlook on what to expect after the bull run.

Why Does Bitcoin Suddenly Go Up?

The anticipation of the upcoming Bitcoin halving and the U.S. Securities and Exchange Commission’s (SEC) approval of 11 spot Bitcoin Exchange Traded Funds (ETFs) are two significant factors that have fueled BTC’s recent price boosts. Bitcoin halving events are programmed to happen every four years.

The aim is always to increase scarcity and demand for the token by cutting rewards for mining in half. BTC went from $12 to $1,217 in one year after the first halving, and the narrative is to always see similar directions at every point this happens.

On the other hand, introducing Bitcoin ETF spots enables investors to get direct exposure to BTC rather than through derivative contracts. There is a possibility the market will experience more transparency from this development, and it is another factor attracting market investors. More people are beginning to trade crypto, and we can trace this trend to these two occurrences.

What To Expect From BTC’s Pump

Institutional Investments and Endorsements

The primary effect of the growing market is the appeal it brings to institutional investors. Software company MicroStrategy announced its investment and purchase of $3,000 BTC (worth $155 million) on the 26th of February.

The institutional landscape also expands to assets like Solana, Litecoin, and Cardano. According to Bybit, institutions are also now allocating their portfolio to some ETH with an increased concentration of about 80% over Bitcoin. Today’s changes and positives are the ripple effects of Bitcoin’s performance over the past months and the promises of more profit with coming events. Traders can visualise these trends and analyse potential entry and exit points using charting platforms like TradingView.

Market Opportunities

Another expected outcome from current price positioning is the market opportunities bound to follow. The crypto space has been raving with new airdrops, presales, and NFT launches in the last few weeks. The bull wave is not only an indication for institutional adopters to get in but also a chance for market participants to make the most gains.

Every token holder in the landscape would have recently increased their portfolio by 30–50%. Meme coins are doing 100% and higher in profits, airdrop launches are making farmers thousands of dollars, and more such opportunities are coming.

Better Entry for Developers and Creators

There is no better time to build or launch a project than during the bull wave, and developers in the market have indeed caught on to this. Since the landscape started showing healthy performance signs, we’ve seen several new projects, ICOs, testnets, and presales. Creators launch new projects daily because early adopters want the next big deal to boost their portfolio. Meme coins like BONK did incredible numbers at launch last year, and we might see more of this coming.

Blockchain Adoption

A survey conducted by Coinbase in 2023 revealed that interest in crypto and blockchain technology is rising. About one-third of respondents on the platform heightened their holdings within the last year, and only 17% decreased their assets. The study also showed that 64% of firms with market investments envision having more in the next three years. New protocols and solutions are being introduced, and crypto’s general acceptance and adoption are becoming heightened.

Crypto awareness and ownership rates have also increased in several regions. 40% of American adults now trade or own these digital assets. This number amounts to about 93 million in this region alone. The rate of crypto ownership amongst women has also soared from 18% in 2023 to 29% in 2024. With the recent price surge, people who own these coins are more optimistic about adopting the usage of decentralized finance.

Market Cues From Bitcoin

The general narrative in the market has always been for other altcoins to trail Bitcoin’s steps, and today, this reality is coming into play again. Other assets, including Ethereum, Solana, Cardano, and Dogecoin, lead the market alongside the project. Meme coins are included, too, as most saw 50–100% gains in the last week. FLOKI rises every hour, and Shiba Inu’s trading volume is going through the roof.

Ultimately, the market is bubbling from every font. We see a growing interest among investors, developers, creators, and significant market movers. The best time to get into the market is at the start of a bull run, and this is your cue to consider adding cryptocurrency assets to your investment portfolio.