Several variables have affected the fluctuations in Bitcoin’s price.
Bitcoin is anticipated to undergo its fourth halving in around 40 days.
Today, bitcoin price reached a new all-time high of over $72,000. As per statistics from CoinMarketCap, the largest cryptocurrency reached a new peak of around $72,300. New spot bitcoin exchange-traded funds (ETFs) and expectations that the U.S Federal Reserve would soon reduce interest rates have likely pumped up BTC prices.
Source: CoinMarketCap
Several variables have affected the fluctuations in Bitcoin’s price, notably institutional adoption, changes in regulation, macroeconomic trends, and investor mood. In addition, Federal Reserve Chair Jerome Powell has said that the interest rates would be decreased later this year, but with caution.
With an average trading volume of about $42 billion per day, Bitcoin has reclaimed a market value of $1.4 trillion. More than $105 million has been liquidated in the last 24 hours, after today’s unexpected rise in Bitcoin prices.
Further Surge Likely
The current positive perspective is being fueled by the expectation that the supply-against-demand shock will intensify, as Bitcoin is anticipated to undergo its fourth halving in around 40 days. Surprisingly, liquidity has grown substantially in the last few months, as Bitcoin’s open interest has progressively grown and now about $35 billion.
Once Bitcoin has overcome all of the current technical obstacles, its price will continue to rise in the weeks to come. Popular cryptocurrency expert Anthony Pompliano predicts that, barring any unforeseen events, the price of Bitcoin will hit $138,000 over the next three weeks.
Nevertheless, a number of experts cautioned investors to exercise caution within the surge, even if there has been recent good momentum. The Spent Output Profit Ratio (SOPR) is a key indicator of an upcoming phase of consolidation, and they cautioned investors against taking advantage of this trend.