zycrypto.com
Bitcoin jumped above $54,000 on Monday, reaching its highest level in over two years — sparking speculations about a potential return to its lifetime high prices.
Ether (ETH), the market’s second-largest digital coin, also surged by around 3.2%, hitting $3,177 amid a crypto-wide market recovery.
Bitcoin’s Bullish Run
Back in 2021, the world’s largest cryptocurrency, Bitcoin ($BTC), flew past $53,000 per coin for the first time in history. After dropping by around 74% from its all-time high in the Terra-powered crisis of 2022, the crypto had a lot of ground to make up. But today, $BTC finally roared past the $53,000 level once again.
The price of the flagship cryptocurrency was hovering at $54,452 at press time, according to data from CoinGecko. That’s a 5.0% gain from yesterday and a 2.8% increase from last week.
Bitcoin began the month sitting at just above $42,000 and steadily posted gains until it topped $50K on Feb. 12. This was the first time that $BTC had surged above $50,000 since December 2021.
Since then, however, the premier crypto hasn’t made any notable price moves. It had been holding steady above the $50K zone for roughly 14 days now but has mostly been trading between the $51,000 and $52,000 range lately before the rally on Monday.
This jump is mainly attributed to rising investor interest, specifically via spot exchange-traded funds (ETFs), which have seen substantial inflows. The spot $BTC investment vehicles saw nearly $5 billion in net inflow since their debut on Jan. 11, spotlighting the shifting investor preference towards regulated and easily accessible products for crypto exposure.
Can Bitcoin Touch $100,000 This Year?
Despite the ongoing pump, the price of Bitcoin is still 22.7% below the $69,044 all-time high registered in Nov. 2021. However, the longer the ETF inflow persists, the higher the chance of a supply shock propelling Bitcoin above $60,000 in the near term.
Moreover, Bitcoin is expected to undergo the halving event around April 20. The halving programmatically happens every four years and slashes the $BTC rewards given to miners for securing the network by 50% to ward off inflation. This means fewer new $BTC will be minted after the halving, subsequently slowing the supply expansion. Market pundits predict that the skyrocketing demand for $BTC following the Bitcoin ETF launch coupled with the upcoming supply crunch resulting from the halving could send $BTC to six digits in no time.
Standard Chartered Bank analysts think $BTC is set to reach $100,000 before the end of 2024. Bitcoin’s upcoming halving will be one of the catalysts for the price upside.