The Bitcoin price breached $59,000 on Feb. 28, reaching a new two-year high of $59,485 and only down 13% from its all-time high (ATH) of $68,789. As BTC’s price nears its all-time-high price in United States dollar terms, it has already broken ATH records against multiple fiat currencies.
Over the past few days, Bitcoin (BTC) has hit ATHs against the Japanese yen, the Malaysian ringgit, the Indian rupee, the new Taiwan dollar, the South Korean won, the Chilean peso, the Australian dollar, the Chinese yuan, the South African rand, the Norwegian krone and the Turkish lira.
#Bitcoin just hit ATH in South Korea pic.twitter.com/0gTFi1sawN
— Vivek⚡️ (@Vivek4real_) February 28, 2024
The new BTC ATH against these currencies shows their declining market values due to rising inflation. The purchasing power of a currency decreases over time with inflation.
According to some market analysts, Bitcoin has entered the price discovery mode after breaching the critical resistance of $57,000. With the Bitcoin halving just 49 days away, the bullish momentum for Bitcoin could help it grow to new highs post-halving, as observed historically.
Flip this resistance and #Bitcoin will enter price discovery pic.twitter.com/1oktxNWPlQ
— Tony "The Bull" (@tonythebullBTC) February 27, 2024
The Bitcoin price has seen at least a 270% surge after each halving event. The price of Bitcoin before 2012’s halving was $12, which jumped to $964 just a year later. Similarly, BTC’s price before the 2016 halving was $663, which surged to $2,500 a year later. Again, in 2020, Bitcoin price before the halving date was $8,500, and just over a year later, it rose to $68,783.
Each bull cycle has a driving factor behind it. In 2017, the retail sector carried the BTC price to $17,000, while institutional influx helped BTC rise to almost $69,000 in 2021. In 2024, market analysts suggest that institutional players are moving the current market, evidenced by the daily net inflows to the new spot Bitcoin exchange-traded funds (ETF) in the United States.
Spot Bitcoin ETFs have seen an average of nearly half a billion dollars in daily inflows, while new BTC being added to the market is meeting just one-tenth of the current demand from spot Bitcoin ETFs. Analysts believe the significant institutional demand and limited supply — further reduced by the upcoming halving — will be a catalyst for BTC price post-halving.
The Bitcoin price is trading at $59,400 at the time of writing, up 5% in the past 24 hours.
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