Bitcoin Closes Above $48,000 for the First Time in Years
Bitcoin’s momentum continued to surge over the weekend, resulting in the asset closing above $48,000. This marks its highest weekly closing point since December 2021. With the upcoming halving just a couple of months away, which historically leads to price growth, many wonder if BTC will retrace further before the event.
Bitcoin Bounces Back After Mid-January Crash
Following a crash in mid-January caused by the approval of 11 spot ETFs by the US Securities and Exchange Commission, Bitcoin experienced a sell-the-news event. The cryptocurrency surged to over $49,000 on the day of the ETFs’ launch but subsequently dropped by more than $10,000 in two weeks. However, the bulls managed to push the asset’s price back up after reaching a low of $38,500.
Last week was particularly impressive as BTC closed at just over $48,300 on Bitstamp, erasing most of its losses from the ETF launch. This is the highest weekly closing price since December 2021.
Potential Inflows Could Drive Bitcoin Price Higher
There are reports and speculations within the crypto community that Bitcoin’s price could reach new heights due to potential inflows of up to $130 billion this year alone. CryptoQuant’s CEO also predicts a best-case scenario where Bitcoin reaches $112,000 by 2024, depending on the total amount of inflows towards spot ETFs in the United States.
The Fourth Halving and Bitcoin’s Price Outlook
In about two months, Bitcoin will undergo its fourth halving. This event halves the production of new BTC and has historically resulted in price increases due to decreased supply. While past performance does not guarantee future results, analysts like PlanB and Lark Davis speculate that there may not be another retracement before the halving. PlanB even suggests that Bitcoin’s price might not drop below $40,000 again, considering its current trading above its overall, 2-year, and 5-month realized prices.
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