Markets
Bitcoin Reaches $66,000 Level, Market Cap Reaches $1,309 Billion; where are the prices going?
Bitcoin prices showed resilience on Friday, returning from the previous day’s decline. This recovery, coupled with positive inflows into Bitcoin spot exchange-traded funds (ETFs) for the fourth day in a row, signals a promising trend for investors.
As Bitcoin rallied, other crypto tokens including Solana, Cardano, Polkadot, and Avalanche also showed strength, posting gains of up to 4%. However, the global cryptocurrency market capitalization saw a slight decline of 0.29%, reaching around $2.38 trillion in the last 24 hours.
The world’s largest cryptocurrency has remained firmly in a tight trading range of $60,000 to $70,000 that has persisted over the past two months, encountering few breakout triggers due to lukewarm risk appetite.
Read also : SEBI recommends regulators oversee cryptocurrency trading, RBI still sees ‘macro risk’
Bitcoin is poised for a strong week amid growing hopes for rate cuts from the US Fed. Following today’s surge, Bitcoin has made significant gains over the past seven days, rebounding from a low of $60,000 last week.
The cryptocurrency is up about 8% from last Friday’s lows, mainly due to a weaker dollar and indications of slowing U.S. inflation.
“Bitcoin surpassed the $65,000 mark, posting a remarkable 7% gain in 24 hours. In the past, such a leap would have attracted many newcomers to Web3. However, the current landscape suggests that new entrants are looking for more than just price fluctuations. Perhaps it’s time for the ecosystem to prioritize user-friendly apps. While pricing may attract investors, tangible use cases appeal to a wider audience,” said Nischal Shetty, co-founder of Shardeum.
Bitcoin’s market capitalization has soared to $1.309 trillion and its market dominance now stands at 54.69%, as reported by CoinMarketCap. During this period, BTC trading volume decreased by 27.4%, totaling $30.9 billion.
“Bitcoin is in the middle of the bull cycle. Its market capitalization is growing faster than its realized capitalization, a trend that typically lasts about two years. If this trend continues, the bull cycle could end by April 2025. Another reason for this increase could be the ETF inflows in May, which have already offset the outflows in April,” said Avinash Shekhar, co-founder and CEO of Pi42.
Read also : The stage is set for the return of Binance and Kucoin to India
Where are Bitcoin prices going?
According to market experts, in the short term, Bitcoin’s price trajectory could be influenced by technical indicators, market sentiment and the actions of institutional investors.
Additionally, the appointment of former BlackRock executive Salim Ramji as Vanguard’s new CEO has sparked speculation that the investment giant may embrace crypto.
“Analysts wonder if Vanguard, under the leadership of cryptocurrency-friendly ETF veteran BlackRock, would finally become bullish on Bitcoin. This increase also follows the revelation in 13F filings that 1,028 companies with over $100 million in assets under management collectively owned $11 billion in Bitcoin as of March 2024, with Millennium Management becoming the largest holder with $2 billion. dollars,” said Rajagopal Menon, vice president of WazirX. Living mint.
Read also : Why Africa is crypto’s next frontier.
Looking ahead, Bitcoin’s long-term prospects remain tied to its fundamentals, including its limited supply and growing adoption as a store of value and hedge against inflation, according to Siddharta Gupta, senior vice president of business and strategic alliances at CoinDCX.
“The approval of the ETF in the United States and Hong Kong and the ETN in London has strengthened its legitimacy and price stability over time. However, it is essential to remain alert to potential risks and uncertainties, including regulatory developments, technological advancements and macroeconomic changes. While historical trends and halving cycles provide valuable information, the future trajectory of Bitcoin prices will likely be shaped by a complex interplay of factors, making accurate predictions difficult,” Gupta said.
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