Bitcoin’s recent surge, which jumped 7% to surpass the $86,000 milestone. This rally is said to be due to a combination of factors. Relaxing inflationary pressures, increased accumulation by institutional investors, and optimism over spot Bitcoin exchange-traded funds (ETFs) combined to drive the surge.
In large part, the increase is driven by increasing optimism concerning Bitcoin’s long-term trajectory. The strong performance can be attributed to growing institutional support and a greater mainstream acceptance of the cryptocurrency.
As a result, a number of spot Bitcoin ETFs have attracted large inflows. ARK Invest’s 21Shares Bitcoin ETF was the largest beneficiary, with inflows powering some $114 million. BlackRock's iShares Bitcoin Trust garnered $93 million, while Fidelity's Wise Origin Bitcoin Fund attracted $74 million.
That’s precisely what happened in late January, when the U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs. This decision was a critical turning point for the cryptocurrency industry. This approval has done even more to legitimize Bitcoin as an investment asset.
Diminished inflation rates are strengthening bets on interest rate cuts by the Feds. The U.S. Consumer Price Index (CPI) decreased to 2.5% in August, down from 2.9% in July. This drop has increased optimism among investors towards riskier assets such as Bitcoin.
The next Bitcoin halving, expected in April 2024, is stoking those bullish vibes. Not surprisingly, halving events have historically been followed by major price appreciation.
Analysts are optimistic about Bitcoin's future. For crypto’s nascent blossoming diamond industry, they’re cautiously optimistic that this upward trend will continue over the coming months leading up to the halving.
One current bullish prediction has Bitcoin climbing as high as $100,000 by the end of 2024. Institutional adoption, macroeconomic factors, and the anticipated halving event are all likely to fuel this potential growth.
