Bitcoin above $69,000: What will the upcoming halving bring?
Bitcoin Surpasses $69,000 After Record ETF Inflows
The current value of Bitcoin has surpassed $69,000, marking a significant surge following a recent price correction. The cryptocurrency has gained over 30% in the last month, a result of investor optimism and record inflows into Bitcoin ETFs.
Regulatory Decisions and Financial Institutions Support
The approval of Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) and permission to trade securities linked to Bitcoin in the UK have had a substantial impact on the sudden change in Bitcoin’s value. Additionally, many major financial institutions, such as BlackRock and Fidelity, have expressed their support for Bitcoin ETFs, leading to record inflows into the cryptocurrency market.
Price Forecasts and Upcoming Bitcoin Halving
The analytical firm Bernstein has raised its price forecast for Bitcoin from $80,000 to $90,000, anticipating further price growth following the upcoming halving scheduled for mid-April. Bitcoin halving, occurring every four years, involves reducing the block reward. The upcoming halving, set to take place in a week, has sparked positive sentiment in the cryptocurrency market.
Controlling Inflation Through Bitcoin Halving
Halvings contribute to slowing down the creation of new coins, limiting the available supply and aiding in inflation control. The last halving took place on May 11, 2020, and this year’s halving will reduce the block reward to 3.125 Bitcoin. These actions are crucial for the stability of the digital currency and its value on the market.
