Bitcoin (BTC) has achieved a significant milestone in its history. For the first time since the debut of spot ETFs, Bitcoin has surpassed the $46,000 mark. This remarkable achievement showcases the ongoing growth and potential of this digital currency. According to data from Coingecko, Bitcoin experienced a 3.4% increase in the previous day to reach $46,075 at the time of publication. Moreover, it maintained a steady 6% increase over the past seven days, indicating a positive trend for investors.
The Rollercoaster Journey: The Rough Start of Bitcoin in 2024
Bitcoin’s journey in 2024 has been far from smooth. Despite the approval of eagerly awaited exchange-traded funds, Bitcoin faced challenges at the beginning of the year. However, there are signs of improvement as Bitcoin is once again trading above the $46k territory. Laurent Ksiss, a specialist in crypto Exchange-Traded Products (ETPs) at CEC Capital, believes that breaking the $45,000 mark could bring early investors in the BTC ETF close to profitability. However, Ksiss also warns of a potential reversal, as investors may take profits, leading to a testing of the $42,000 to $40,000 level.
Following the introduction of 10 ETFs in January, the price of Bitcoin experienced an unexpected decline. This decline occurred after Grayscale, one of the funds, converted its Bitcoin Fund ETF to an open-ended fund. Previously, investors had to hold their shares for a minimum of six months before being able to cash out. As Grayscale made this transition, many investors eagerly redeemed their shares, resulting in a significant sell-off of Bitcoin. The price briefly dropped below $39,000. However, it seems that this sell-off has come to an end, and Bitcoin is once again on the rise. Large holders acquiring the asset have contributed to this resurgence.
Markus Thielen, head of research at Matrixport and founder of 10x Research, believes that Bitcoin is heading towards $48,000 in the near future. This prediction is based on the historical performance of Bitcoin during the Chinese New Year festival. Thielen’s research indicates that Bitcoin often experiences gains of over 10% during this period. If traders acquire Bitcoin three days prior to the start of the Chinese New Year and sell it 10 days later, the price of Bitcoin has increased over the past nine years. This statistical pattern suggests that Bitcoin may continue to rise in the coming days.
New Horizons: Bitcoin’s Potential Journey Towards $50,000
LMAX Digital, a leading institutional crypto exchange, anticipates Bitcoin to continue its upward trajectory and potentially reach the $50,000 mark. According to LMAX Digital, Bitcoin has broken out of a range and shows signs of aiming for a surge to a new yearly high. Using Elliott Wave theory, a technical study that analyzes repeating wave patterns, Thielen predicts further upside for Bitcoin in the future. This theory suggests that Bitcoin has entered its fifth and final impulsive stage, with a potential target of $52,000 by mid-March.
Bitcoin’s recent achievements and positive trajectory in the market showcase its potential as a digital asset. While the market remains volatile and investing carries risks, Bitcoin continues to attract attention from investors worldwide. It is crucial for individuals to conduct thorough research and make informed decisions when considering investments in Bitcoin or any other digital currency. The rise of Bitcoin above $46,000 signifies a significant milestone in its journey, and the future holds promising opportunities for this innovative digital asset.