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Bitcoin's 23% Monthly Gain Boosted by US Trading Hours 🚀

Bitcoin’s 23% Monthly Gain Boosted by US Trading Hours 🚀

The Surge in Bitcoin Price: US Trading Hours Drive 12% of the Gain

The price of Bitcoin, the leading cryptocurrency, has seen a significant surge of over 23% this month, reaching the $52,000 mark for the first time since December 2021. A report by Matrixport reveals that 12% of this surge occurred during US trading hours.

Bitcoin’s rise in value this month was not solely driven by US trading activity. Europe contributed 7% to the overall gain, while Asia contributed 4%. This indicates a global interest and investment in Bitcoin.

Factors Driving Bitcoin’s Rise

The surge in Bitcoin’s price can be attributed to several factors:

  • Approval of Spot Bitcoin ETFs: The US Securities Exchange Commission recently approved a series of spot Bitcoin exchange-traded funds. This development opened the floodgates for institutional investors to invest billions of dollars in Bitcoin.
  • Macroeconomic Landscape: In the face of enduring inflation and other macroeconomic challenges, investors are turning to safe haven assets like Bitcoin as a means to diversify their portfolios.
  • Inflation Concerns: With inflation persisting above central banks’ comfort zones globally, there is an expectation of an extended period of elevated interest rates. This situation may moderate market anticipations for an early easing of monetary policies, leading to investor disillusionment.
  • Modest Earnings Growth and Geopolitical Risks: Factors such as modest earnings growth and various geopolitical risks are expected to exert downward pressure on stock markets. As a result, investors are seeking alternative investments like Bitcoin.

An Analyst’s Outlook for 2024

Jag Kooner, the Head of Derivatives at Bitfinex, provides an outlook for 2024, suggesting that the year will see restrained expansion and only marginal growth. His predictions include:

  • S&P 500 Earnings Growth: The S&P 500 index may experience modest earnings growth, ranging between 2% and 3%. It is expected to settle around the 4,200 mark, but with a slight inclination toward the downside.
  • Bitcoin Halvening Event: The upcoming Bitcoin halvening event scheduled in April is seen as a positive catalyst that will drive the price of Bitcoin later this year. This event reduces the block reward for miners and historically has led to an increase in Bitcoin’s value.

Hot Take: Bitcoin’s Rise Reflects Growing Interest in Safe Haven Assets

The surge in Bitcoin’s price, particularly during US trading hours, highlights the growing interest among investors in safe haven assets like Bitcoin. With inflation concerns, modest earnings growth, and geopolitical risks affecting traditional markets, many investors are turning to alternative investments to protect and diversify their portfolios.

Bitcoin’s approval of spot Bitcoin ETFs by the US Securities Exchange Commission has opened doors for institutional investors to invest substantial amounts of money into the cryptocurrency. This influx of institutional capital has contributed significantly to Bitcoin’s recent rise.

Furthermore, the upcoming Bitcoin halvening event is anticipated to further boost the price of Bitcoin. As supply decreases due to reduced block rewards for miners, demand may continue to rise, driving up the value of the cryptocurrency.

If you’re considering diversifying your investment portfolio or seeking a safe haven asset amidst market uncertainties, it may be worth exploring Bitcoin as a potential option. However, it’s essential to conduct thorough research and consult with a financial advisor before making any investment decisions.

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Bitcoin's 23% Monthly Gain Boosted by US Trading Hours 🚀