The world's largest crypto asset by market capitalization, Bitcoin (BTC), again set a new record by breaking the level of $ 50,000 (Rp 788.7 million) per coin on Monday (12/2). This represents Bitcoin's highest price since 2021, fueled by factors such as Bitcoin ETFs, halvings, and long-term accumulation.
Bitcoin Price Increase Factors
One of the factors driving Bitcoin's price up is the existence of a Bitcoin ETF that received regulatory approval in the US last month. A Bitcoin ETF is an investment product that tracks the price of Bitcoin and is traded on a stock exchange.
According to data from CoinShares, a crypto analysis firm, Bitcoin ETFs recorded net inflows of $1.1 billion last week. Since its launch, the Bitcoin ETF has experienced inflows of $2.8 billion (IDR 44.1 trillion).
Some of the popular Bitcoin ETFs in the US include the Fidelity Bitcoin ETF, BlackRock Bitcoin ETF, and Grayscale Bitcoin ETF. These three ETFs have assets under management (AUM) of $3 billion (IDR 47.3 trillion), $3.15 billion (IDR 49.5 trillion), and $4.83 billion (IDR 75.9 trillion), respectively.
Bitcoin Halving Triggers BTC Rise
Another factor supporting the Bitcoin price increase is the Bitcoin halving that will occur in April. A Bitcoin halving is an event where the reward per block given to Bitcoin miners is halved.
The Bitcoin halving aims to control Bitcoin inflation and keep its scarcity at bay. Bitcoin halving happens once every four years. The last halving took place in 2020, where the reward per block dropped from 12.5 bitcoins to 6.25 bitcoins.
The 2024 halving will bring the reward per block to 3,125 bitcoins. This will reduce the supply of new Bitcoins coming into the market, potentially increasing the price of Bitcoin if demand remains high.
Long-Term Accumulation
The third factor contributing to Bitcoin's price rise is the long-term accumulation by investors. Long-term accumulation is a strategy where investors buy and hold Bitcoin for a long period of time, without being affected by short-term price fluctuations.
Long-term accumulation shows investors' confidence in Bitcoin's future prospects. According to the author of Crypto Is Macro Now, Noelle Acheson, long-term accumulation has been seen since quite some time.
"The rise in Bitcoin accumulation in recent days may be the result of continued spreading Bitcoin awareness, driven by the ETF marketing machine," Acheson wrote in an article.
Acheson also added that "Bitcoin doesn't just survive; it's thriving."
Crypto Analyst Predicts Bitcoin Price to Rise Again
With various factors in its favor, Bitcoin has the potential to continue to increase in price in 2024. Some analysts even predict that Bitcoin could reach $63,500 per coin by the end of this year.
One optimistic analyst is Tom Lee, founder and head of research at Fundstrat Global Advisors. Lee said that Bitcoin has a positive correlation with the S&P 500, a major stock index in the US, which also hit record highs recently.
"Bitcoin is a risky asset, so when investors feel more confident, they tend to buy Bitcoin," Lee said in an interview with CNBC.
Lee also said that Bitcoin has a negative correlation with the U.S. dollar, meaning that a weaker dollar would benefit Bitcoin. Lee assessed that the US dollar will weaken along with the fiscal and monetary stimulus carried out by the US government to overcome the impact of the Covid-19 pandemic.
"We think the U.S. dollar will weaken significantly this year, and that will be a big boost for Bitcoin," Lee said.
How to Buy Crypto on Bittime
You can buy and sell crypto assets in an easy and secure way through Bittime. Bittime is one of the best crypto applications in Indonesia that has been officially registered by Bappebti.
To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have enough balance by depositing some funds into the wallet. For your information, the minimum asset purchase at Bittime is Rp10,000. After that, then you can make a crypto asset purchase in the application.
Monitor the price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
Bitcoin Halving: What Is It and When Did It Happen?
What Will Happen to the Bitcoin Network After the Halving?
Buy Bitcoin vs Spot Bitcoin ETF, Which One is More Profitable?
DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.
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