Cryptocurrency traders are celebrating: on March 11, bitcoin price reached $72,300, its new all-time high. And it is not showing any signs of slowing down. Learn what influences the bitcoin price, what to expect from bitcoin halving 2024, and how to trade bitcoin to take advantage of the surge.
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Key takeaways
- Bitcoin has just reached its new all-time high of $72,300;
- Favorable regulatory environment, market sentiment, and the upcoming bitcoin halving all contribute to the rise of the price;
- The bitcoin halving 2024 is expected to have a similar effect on the market as previous BTC halvings in 2020, 2016, and 2012;
- Crypto investors are optimistic about the BTC price hitting new milestones in the near future.
What Happened?
On March 5, 2024, bitcoin reached nearly $69,000, which beat its previous maximum. However, on March 11, bitcoin tested a new all-time high of $72,300. This new milestone arrives after a tumultuous period in the cryptocurrency industry, marked by a severe meltdown less than two years ago.
The ever-so-volatile cryptocurrency had been in a steady decline from its previous highest high of $64,000 back in 2021, until November 2022. Back then, bitcoin’s price plummeted below $17,000 following the collapse of Bankman-Fried’s FTX. After reaching a plateau of $30,000 in July 2023, BTC began its slow climb to the recent all-time high.
Bitcoin Price Drivers
What made BTC gain so much of its value? Several key factors have contributed to BTC’s record moment.
First of all, it operates as a speculative asset, attracting investors for its potential for significant gains rather than its utility. Factors like fluctuations in interest rates have played a pivotal role in shaping bitcoin’s trajectory. The recent indication from the Federal Reserve about halting rate hikes and potential cuts, coupled with positive economic indicators, has created a favorable environment for speculative assets’ performance, including BTC.
Another big contributor to bitcoin’s success is the recent judicial decisions, particularly from the U.S. Securities and Exchange Commission (SEC). After a long period of being skeptical about cryptocurrency, it finally favored crypto companies such as Ripple. It paved the way for the introduction of bitcoin Exchange-Traded Funds (ETFs). The entry of major players like BlackRock into the ETF market has not only lent credibility to bitcoin but also expanded its investor base.
Last but not least, the upcoming bitcoin halving in 2024 is likely a significant factor in the increase of bitcoin price.
Bitcoin Halving 2024
BTC is about to have its fourth halving in history. The event will take place in April 2024 and it will cut the reward miners receive for verifying transactions in half, reducing it from 6.25 new BTC per block to 3.125 BTC. But why does cutting rewards lead to an increase in the crypto’s price?
Bitcoin halvings happen every four years and help keep the cryptocurrency supply limited, while simultaneously contributing to the price rise. This mechanism is programmed into the Bitcoin protocol to control its supply and maintain its scarcity, similar to how precious metals like gold are mined. The halving process plays a crucial role in Bitcoin’s economics, maintaining the price high, while creating a deficit of the coin.
Historically, the BTC price always tends to rise around the halving events, with the price patterns being similar in 2020, 2016, and 2012. Though the price increase is not guaranteed, it is not unlikely that we can expect the cryptocurrency to continue its climb and reach an even higher price. After all, we are already witnessing a significant upturn with no signs of slowing for the bullish trend.
How to Trade BTC Now?
If Bitcoin maintains a similar trajectory to the previous halving events, its price could potentially hit the $220k milestone by 2025. There is no way to know this for sure, however, the historical data speaks for itself. With this in mind, even traders who do not own BTC might still want to attempt to take advantage of the bitcoin halving 2024.
There are two ways to trade bitcoin. You may purchase the coin through a crypto exchange and then sell it at a higher price, following the next spike. This would require registering a crypto wallet, understanding how crypto transactions work, and dealing with commissions from the crypto exchange.
CFD trading comes in handy for those who want to trade bitcoin without having to actually purchase it. It allows traders to make a prediction regarding the price of the crypto and receive profits if the prediction is correct. With the extreme volatility that is typical for bitcoin, traders have the opportunity to ride both bullish and bearish waves, buying or short selling on CFD. It also doesn’t require a crypto wallet or any other attributes except for an account with an online broker.
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CFD trading allows to trade assets without buying them. This makes investments as small as $1, $5, or $10 possible. Traders receive profits based on their prediction about the direction of the price. You can check the full guide of trading CFDs on cryptocurrency on IQ Option here.
Final words
With bitcoin reaching new highs, crypto traders are keeping their eyes peeled for fresh opportunities. Many factors, including the upcoming BTC halving 2024, are contributing to the skyrocketing bitcoin price and some analysts believe that the trend will not stop here. Just on Monday, March 11, the bitcoin all-time high updated twice. At the same time, the extreme volatility of this asset often discourages traders from trying their hand at BTC trading.
Will you be trading BTC in the current market? Let us know what you think in the comments below.
