BITCOIN, which hit $52,000 and regained $1 trillion in market value after 26 months last week, may soon hit $60,000, according to experts.
They say there is increased buying pressure among crypto investors in anticipation of halving event in April.
Parth Chaturvedi, Investments Lead, CoinSwitch Ventures said both demand and supply side factors are having a direct impact on prices, sending Bitcoin to price levels that it achieved in 2021.
The crypto industry faced a chilling winter for nearly two years. However, in 2023, Bitcoin’s price surged by more than 125%, primarily in anticipation of the launch of spot Bitcoin ETFs (exchange- traded funds) in the US.
“The approval of spot Bitcoin ETFs has led to increased institutional interest, with the offerings from BlackRock and Fidelity already amassing more than $5 billion and $4 billion in Bitcoin AUMs. They are the most successful ETF offerings ever, and it has only been their first month of launch. This constant buying pressure has resulted in a significant increase in Bitcoin’s price and a broader acceptance of crypto as a legitimate asset class,” he added.
According to Edul Patel, CEO of Mudrex, the next psychological threshold to overcome is $55,000, paving the way for a potential ascent to $60,000. “While a temporary dip is expected,the trajectory suggests Bitcoin may surpass the $60,000 mark and continue its upward trend before the halving event,” he added.
Though investor sentiment towards Bitcoin appears to be bullish, investors need to be cautious before making any investment decision.
“While the current momentum is encouraging, the volatility of the cryptocurrency market means that prices can fluctuate quickly. Investors should therefore carefully assess their risk tolerance and investment objectives before entering the market,” said Sathvik Vishwanath, CoFounder & CEO, Unocoin