Why Bitcoin, other cryptocurrency prices have been rallying (2024)

FAQs

Why Bitcoin, other cryptocurrency prices have been rallying? ›

Why has it risen in price this time? A major factor in bitcoin's rise since the start of the year has been the approval by the US financial regulator in January of exchange-traded funds [ETFs] – a basket of assets that can be bought and sold like shares on an exchange – that track the price of bitcoin.

The most common reason given for this year's surge is the U.S. Securities and Exchange Commission's January approval of bitcoin ETFs, and expectations that central banks will cut interest rates.

Specifically, bitcoin has moved like a speculative asset: a high-risk class of investments that draw interest for their potential to greatly increase, as opposed to their underlying utility. When interest rates shrank during the pandemic, allowing people to borrow and invest money more easily, bitcoin boomed.

Scheduled to occur in April, this halving will decrease the daily production of Bitcoin from 900 to just 450 coins. The anticipation of this supply shock, where the rate of new supply entering the market halves, is further fueling the rally. A crucial element driving Bitcoin's price surge is its finite supply.

The surge in prices last time was driven by the liquidity created by Covid-19. However, this time, the crypto market has rallied due to factors like the increasing popularity of Bitcoin ETFs, anticipation of Bitcoin halving in April, and the expected rate cut by the US Federal Reserve.

“A clearer regulatory framework is expected to drive increased corporate adoption and higher liquidity … and, ultimately, help address volatility. These factors, in turn, should contribute to an increase in Bitcoin prices.”

Miners who successfully add blocks to a blockchain automatically receive transaction processing fees and new digital tokens. Creates economic opportunities. The accessibility of crypto mining is creating new business opportunities for tech-savvy people around the world.

A $100 investment in Bitcoin could purchase 0.00607 BTC today based on a price of $16,466.14 at the time of writing. If Bitcoin hits the $1 million price target by Wood in 2030, the $100 investment would turn into $6,070. This represents a gain of 5,970% from now until 2030.

Who Owns the Most Bitcoins? Satoshi Nakamoto, the pseudonymous creator of Bitcoin, is believed to own the most bitcoins, with estimates suggesting over 1 million BTC mined in the early days of the network.

Bitcoin is not backed by any asset or physical commodity. Bitcoin does not require backing since it is sound money because of its inherent monetary properties that allow it to be a good store of value, medium of exchange, and unit of account.

How much will 1 bitcoin be worth in 2030? ›

Bitcoin (BTC) Price Prediction 2030

According to your price prediction input for Bitcoin, the value of BTC may increase by +5% and reach $ 87,239.62 by 2030.

In 2016, Dutch national Didi Taihuttu, his wife and three daughters sold everything they owned to invest in Bitcoin when it was trading at only $900. “We sold everything we had – house, cars, motorbikes, holiday home, clothes, toys, furniture and [it] all went into Bitcoin,” Mr Taihuttu tells The National.

Instead, each market or exchange determines its price based on supply, demand and other factors, such as technological advancements, security measures and regulatory developments.

Cryptocurrency Analyst

This article will introduce five top cryptocurrencies that are tipped to explode in 2024: Pikamoon, Solana, The Graph, Sei, and Cosmos. Diving deeper, we'll explore the factors that may contribute to their explosive growth, analyse market trends and insights, and examine investment strategies.

1. Dogeverse – A Multi-Chain Doge Token Expected to Boom in 2024. Dogeverse ($DOGEVERSE) is a multi-chain doge-based token. With the ability to “hop” between different networks, eager investors can purchase $DOGEVERSE on six major blockchains, from Ethereum, BNB Chain, and Polygon to Solana, Avalanche, and Base.

If you choose to invest, it's important to maintain a diversified portfolio that includes several different types of investments to reduce your overall risk exposure. As a rule of thumb, don't invest more than 10% of your portfolio in risky assets like Bitcoin. NerdWallet's ratings are determined by our editorial team.

Bitcoin's (BTC) bull run could add to inflation in the U.S. economy, making it harder for the Federal Reserve to cut interest rates this year. The leading cryptocurrency by market value has gained over 50% in 2024 already, extending last year's 155% surge to trade within striking distance of record highs near $69,000.

The Bitcoin price is defined by supply and demand. When there is more demand for Bitcoin, the price goes up.

The most recent bitcoin halving took place on April 19, 2024. At the time, the reward for each block of mined bitcoin was cut in half from 6.25 BTC to 3.125 BTC. This event occurs approximately every four years, or more precisely, every 210,000 blocks.

UK fintech firm Finder carried out a study based on expert price predictions of 40 crypto industry specialists on how Bitcoin is expected to perform through to 2030. Bitcoin, it found, is likely to hit an average peak price of $87,875 in 2024, with some experts predicting it will climb as high as $200,000.