After a shaky few months, Bitcoin has made a strong comeback, peaking above the $87,000 level, solidifying a significant turnaround over the past few weeks. This increase is explained by the global liquidity conditions as well as a new interest of institutional investors.
Bitcoin has rocketed up more than 30% since the beginning of April 2024. This increase is testament to its incredible strength in the face of current fears over U.S. trade wars. The crypto’s extraordinary showing is especially notable as we celebrate the one-year birthday of the bitcoin halving event. This event halved the block rewards from 6.25 BTC to 3.125 BTC.
The halving has effectively reduced the rate at which new coins enter circulation, reinforcing Bitcoin's scarcity. This pernicious design feature is at the heart of Bitcoin’s value proposition, and patient capital Bitcoin long-term holders are watching its deleterious effects play out on the market.
From payments to property rights, Bitcoin’s utility is growing by the minute. Another one of those retailers is a small supermarket in Zug, Switzerland that just started accepting Bitcoin payments. Tokyo-based Metaplanet is on the warpath, scooping up Bitcoin as fast as they can get their hands on it. They now have more than $400 million in BTC, as they seek to obtain 21,000 coins.
Bitcoin's price trajectory post-halving has been remarkable. It flew through $109,000 less than 273 days after the 2024 halving. Weekly moving average transactions issued per day This increase occurred much more quickly than the 546 and 518 days needed following the halvings of 2020 and 2016, respectively.
"if BTC clears $90,000, a return to all-time highs could come swiftly, especially with fewer coins available post-halving" - Vugar Usi Zade
"We may not need to wait until mid-2026 for a peak," - Enmanuel Cardozo
Bitcoin’s ability to recover in the face of bubbling world economic concerns and U.S. trade war drama is a strong sign of conviction in these unpredictable markets.
