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OpinionsBitcoin Closing In On $60000 As Cryptocurrency Market In Booming

Bitcoin Closing In On $60000 As Cryptocurrency Market In Booming



By Arun Kumar Shrivastav

As we go about our lives with mundane affairs, Bitcoin (BTC) is on the fire. Well, hold your breath! BTC is only a few hundred away dollars from the $60,000 milestone. At the time of writing, BTC is trading at $59,258.65 — that is, 5.22% up on 24-hour, 14.58% up on 7-day, 39.44% on 1-month, and a massive 154.38% up on 1-year timeframe. With $60K achieved, BTC can go berserk, with recent surge of institutional interest in the coin. The overall crypto market cap has soared to $2.2 trillion, while that of BTC is $1.164 trillion. The second most popular cryptocurrency, Ethereum (ETH), is up 13.80% to $3,324.32 in a 7-day timeframe.

Even at this bullish moment, some investors are not choosing profit-booking. Instead, they are still going for more. Take the example of MicroStrategy, an IT company with products in several categories, including market intelligence, mobile software, and cloud-based services. Two days ago, when BTC was moving around $51000-$52,000, MicroStrategy bought 3,000 more Bitcoins, increasing their total holdings to 193,000, worth nearly $10 billion. This purchase adds to their strategy of holding Bitcoin as an investment, with their average purchase price being significantly lower than the current market price. MicroStrategy, a publicly traded company, currently holds the most Bitcoin among publicly traded companies, except for Grayscale's Bitcoin Trust.

BTC has seen its all-time high in November 2021 when it skyrocketed to $69,000, driving the overall cryptocurrency market cap to $3 trillion. After that momentous high, the cryptocurrency market experienced a long winter during which several crypto companies went bust and nearly 30,000 were lost. The bull run is back once again, and given the historical background, such as bitcoin halving approaching, the bull run is expected to continue. It can drive BTC to $100,000, a psychological milestone, in the near term. If BTC and other coins keep going north like they are doing now, it will be impossible for policymakers to try to ignore cryptocurrencies. Can you think of an investment that can give you a 150% return in a year and, at the same time, it is as liquid as BTC?

Over the past few days, BTC has added $140 billion on average to its value. Which company would not like a few days like this in their ? MicroStrategy did not sell BTC even when it dropped from $69K to under $20K during this crypto winter. They have kept their faith in BTC, and they are doing it even now. Well, today, they have a reason to smile, too!

Bitcoin is experiencing a resurgence in interest from investors and traders, fuelled by its recent price surge and the potential for substantial profits. On-chain data reveals a significant increase in activity on cryptocurrency exchanges, with short-term holders and speculators leading the charge.

One key driver of this renewed interest is the improved profitability for Bitcoin investors. Since the beginning of the year, the average investor has seen their holdings appreciate by an impressive 120%, highlighting the potential for significant gains. This positive sentiment has attracted new participants to the market, as evidenced by the near-record daily exchange volume. This increased trading activity indicates a rise in speculative behaviour, with short-term holders depositing more of their Bitcoin onto exchanges.

Furthermore, the launch of Bitcoin ETFs has played a crucial role in driving demand. These exchange-traded funds have absorbed over $6 billion in Bitcoin since their January debut, offering a convenient and accessible way for institutional investors to gain exposure to the cryptocurrency. This new avenue for institutional participation further bolsters the long-term outlook for Bitcoin.

The data reveals a significant uptick in open interest for Bitcoin futures and options contracts. This surge suggests increased leverage and potential volatility in the market as traders utilize these instruments to amplify their gains (or losses).

However, policymakers still need to be convinced, and they would want you to continue with the old centralized financial system. United States senator from Massachusetts, Senator Elizabeth Warren, has once again criticized the crypto industry, expressing her frustration that it appears unwilling to adhere to established financial regulations.

In an interview with Bloomberg Television, the 74-year-old politician and a former law professor stated her desire to collaborate with the industry. Still, they questioned why it seemed to resist regulations, suggesting it was creating space for illegal activities. She emphasized the need for the crypto sector to follow the same rules as the traditional U.S. financial system. Warren referred to her proposed “Digital Asset Anti-Money Laundering Act,” which aimed to impose anti-money laundering requirements on various crypto entities, including miners, validators, and wallet providers. The bill is awaiting approval but has faced delays in the Senate Banking Committee. (IPA Service)




The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

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