As if there weren’t enough believers in a Bitcoin comeback after all the downfalls registered, now all these supporters are given another milestone to look at, namely the asset’s achievement of a new all-time high after the last one recorded at $72K this year. Similarly, traders are squashing in to buy Bitcoin with bank transfer while it’s still decently priced on platforms exchanges to reap the benefits further when it reaches that well-awaited turning point.
It’s only normal for every investment and financial media source to be flooded with Bitcoin-related topics since this achievement has been prepared for since last year, when aspirations for approvals for BTC ETFs gained substantiality. A few weeks after the anticipated announcement of the success achieved by Invesco & Galaxy, WisdomTree, Bitwise, Valkyrie, and numerous other entities, bringing to fruition the hopes of the most enthusiastic investors, and everybody is now considering including Bitcoin in their portfolio in the near future.
Now, call options of $80K and over are being bought, representing amounts higher than the best price ever registered by Bitcoin. This unparalleled devotion and confidence can only point to a possible higher demand for the asset in the future, which would naturally see BTC’s price grow. More about what you can expect from Bitcoin, traders’ positions, and the overall crypto market can be grasped in the following paragraphs, so let us keep you posted!
High expectations are rising for upcoming interest rate cuts
Bitcoin marked the $70K threshold for the first time in over two years, being gauged now by experts to follow an upward trend as it’s buoyed by anticipations of slashing interest rates in the following months, together with the new regulations aiming at tracking the asset’s valuation in U.S. ETFs. Regarding the former, inflation’s pulse started to decrease at the beginning of the year, strengthening hopes that the Federal Reserve would deem interest rate slashes more aggregable in the subsequent months. As a generally held expectation, the interest rate reductions could see the light of day in the early days of summer, but not earlier than that.
Such exciting news could translate to better prospects for the cryptocurrency sector, as generally high interest rates cultivate fear and terror in investors who find themselves straying away from reputably risky assets like cryptocurrency. As positive signs are on the horizon, we can assume that the waters will be calm in the crypto sector and maintain this trend up to the end of the year.
The Fear and Greed index has last been this high around the asset’s ATH
If there’s anything that can indicate the level of optimism in the market regarding future crypto performances, the best at mastering this job is the Fear and Greed index, intended to translate investors’ emotions into numbers and percentages. To make the most reliable analysis possible, this indicator is deducted based on investors’ and traders’ behaviors, including market momentum, social media activity, surveys, Google trends, and market volatility, among other elements.
This benchmark has hit the 79/100 point for the first time since the asset was held in such high regard, namely, those days when it was pridefully boasting a $69K valuation. Now that the sector has finally entered the “extreme greed” sector and approaches the peak of performance, it’s safe to say that the following weeks are crucial for investors.
Bitcoin has been rising gradually, with slight barriers along the way, meaning that if spikes keep this pace, investors could soon find themselves sorrowful for not accumulating the asset when it was still tolerably priced. It seems like the repercussions of the major crypto exchanges’ failures are finally waning and stepping away from investors.
Traders are walking on BTC ground with both feet
Traders’ beliefs for Bitcoin’s future performance are incredibly positive. Studies from metrics analysts indicate that market participants have never been more bullish in the past three years, pointing to rising interest and a desire to accumulate the asset on the back of its recent push above the $70K threshold.
Now, amidst efforts to seal its hold over the previously hit level of $70K, data indicates that the enthusiasm of traders and investors hasn’t been dragged down, but has secured a healthy level.
For those unfamiliar with the depth of the crypto realm, call options represent financial contracts that empower the acquirer to buy a certain amount of Bitcoin or any other asset at a pre-established price, also known as the strike price, with the timeframe edging the expiration date. Nevertheless, the purchaser has no obligation to invest in the cryptocurrency at this valuation.
Investors are preparing for the halving
All the news points to prosperity in the Bitcoin world, but this trend is not about ETFs or hefty call options, as it is about the asset’s quadrennial halving, or simply “the halving”. The world’s largest cryptocurrency differentiates from Ethereum through its capped coin number, representing a feature annexed in its white paper by Satoshi Nakamoto, the cryptocurrency’s creator. These events mark the reduction to half of the rewards received by miners for mining, meaning they will receive 50% less satoshis than they have previously received for solving cryptographic problems through their high-end systems and adding blocks to the chain.
If you’ve been keeping tabs on Bitcoin and your peers, then the chances are that you’ve come across the halving a few times. But for those who aren’t in the loop, all the hype around this event could seem perplexing or unsubstantial. We must shine a light on it, reminding us that historically, this reward-reducing event has brought about bull runs for the asset, seeing it rise to unexpected heights. For the same positive result is expected after the halving scheduled for April of this year, savvy investors are accumulating Bitcoin in the hopes of a healthy ROI.
At the current moment, Bitcoin’s value is regarded as significantly high and encouraging, which explains why investors have been jumping on the asset recently.
