Bitcoin surpassed $59,000 in price on Wednesday, and it could hit a new all-time high within weeks, predicts the CEO of one of the world’s largest independent financial advisory, asset management and fintech organisations.
The bullish prediction from deVere Group’s Nigel Green comes as the pioneer of digital assets sailed through the historic milestone, edging closer to the previous all-time high of approximately $69,000 on November 10 2021.
He says: “If the current momentum continues, we expect that Bitcoin could beat the previous all-time high in a matter of weeks.
“A key driver behind Bitcoin’s recent surge is the growing interest and involvement of institutional investors, notably through the introduction of Bitcoin Exchange-Traded Funds (ETFs).
“The approval and launch of spot Bitcoin ETFs, which track the price of the cryptocurrency directly rather than futures contracts, have provided institutional investors with a more accessible and regulated means of entering the crypto market, accelerating institutional adoption, and bringing more liquidity and stability to the market.”
It’s been reported that BlackRock’s Bitcoin ETF took in $520 million yesterday – the second biggest inflow in a day of any ETF.
The approval of spot ETFs is viewed as a milestone in the journey of Bitcoin towards mainstream acceptance.
“As more institutional players enter the space, the increased demand for Bitcoin has been driving prices higher. The influx of institutional capital also adds a layer of stability to the market, potentially mitigating some of the volatility traditionally associated with cryptocurrencies.”
Another factor contributing to the optimistic outlook for Bitcoin is the approaching halving event.
“Bitcoin undergoes a halving approximately every four years, reducing the rate at which new coins are created by half. The supply of new Bitcoin entering the market decreases, creating a potential supply shock that historically has correlated with significant price increases,” notes Nigel Green.
“The next Bitcoin halving is anticipated in April, and historical data suggests that these events often precede substantial bull runs.
“As the issuance of new Bitcoin slows down, the existing scarcity of the digital asset becomes even more pronounced, typically leading to increased demand and, subsequently, higher prices.”
Beyond institutional involvement and the halving hype, the surge in Bitcoin’s price is also being driven by increasing retail interest.
The deVere CEO comments: “The broader acceptance of cryptocurrencies, with major companies now accepting Bitcoin as a form of payment and traditional financial platforms integrating digital assets, is attracting a more diverse range of retail investors.
“User-friendly exchanges and mobile apps have made it easier than ever for retail investors to enter the crypto market, contributing to the democratisation of cryptocurrency investing. This combination of institutional and retail interest is creating a dynamic and robust ecosystem that could propel Bitcoin to new heights.”
He concludes: “Nothing is for sure, of course, and cryptocurrencies remain highly speculative, but the enormous interest in spot ETFs and the upcoming halving event – which only happens every four years – can be expected to continue to fuel the current momentum which could lead Bitcoin to surpass the $69,000 mark.”