Bitcoin’s price has reached a new milestone, surpassing $50,000 for the first time since December 2021. This is a major achievement for the most popular cryptocurrency, which has seen a 25% growth over the past week.
The factors that pushed Bitcoin to $50,000
Bitcoin broke through the $50,000 wall, reaching precisely $52k. This is a relevant psychological level, which could pave the way for new rises or possible corrections.
Bitcoin’s return to $50,000 is the result of a number of positive factors, including growing interest from institutional and retail investors, reduced selling pressure from Grayscale, increased inflow into spot Bitcoin ETFs, and the nearness of the halving, scheduled for late April.
The halving and Bitcoin’s future prospects
The halving is an event that takes place every four years and halves the reward for Bitcoin miners, making the supply of new coins scarcer. Historically, halvings have always preceded strong bull markets for Bitcoin, which could therefore aspire to return to its all-time highs.
Bitcoin’s all-time record is $69,044, reached in November 2021, when the total crypto market capitalization was $3,000 billion. Currently, the capitalization is around $1.9 trillion, which means there is still plenty of room to grow.
Opportunities for other cryptocurrencies
Not only Bitcoin, but also other cryptocurrencies, such as Ethereum and altcoins, could benefit from this favorable scenario, especially thanks to the development of innovative sectors such as DeFi, NFTs, Web 3.0 and the Metaverse.
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