Markets News Report
February 12, 2024

Bitcoin Price Soars Near $49K Amid Record Inflows and Halving Optimism

Bitcoin Soars Near $49000 Amid Record Inflows and Halving Optimism

Bitcoin (BTC) rose approximately 1% to $48,694 as of 00:15 UTC on Monday, signaling a seventh consecutive daily gain, the longest streak since January 2023. This surge in value coincides with the launch of nine new spot Bitcoin ETs in the United States on January 11, garnering a cumulative investor inflow exceeding $9 billion.

Moreover, the digital asset rose 5% on Friday to one-month highs. According to market analysts, one of the primary factors supporting optimism is the impending Bitcoin halving event slated for April 2024.

The Bitcoin halving event occurs every four years, resulting in a 50% reduction in BTC rewards for miners (reducing the miner’s payout to 3.125 BTC). This event is typically perceived as beneficial for Bitcoin’s price dynamics as it effectively diminishes the available supply. Historically, the halving event has driven momentum in Bitcoin’s price trajectory.

Currently, Bitcoin is trading over $48,340 (at the time of writing) at 07:30 UTC.

Source: CoinDesk

“Long-term $BTC demand flows this year are approximately $40-130B plus. One of the most common cardinal sins of crypto investors/traders is underappreciating the amount of wealth/income/liquidity in the world and its spillover into crypto. We hear stats about the market cap of gold, stocks, and real estate so often that it likely turns into noise for many,” Andrew Kang, a crypto entrepreneur, said on social platform X.

“Many in crypto get stuck in their own little crypto bubble, but the more you travel and meet other business owners, HNWI, etc, the more you realize how incomprehensibly massive the amount of $ there is in this world and how much of that can come into $BTC/crypto,” Kang added.

Besides Bitcoin, at the time of writing Ethereum is currently trading at over $2,498, Solana at $106, and Chainlink at $20 today.

Where is the Crypto Market Heading?

The onset of 2024 saw favorable conditions for cryptocurrencies, including prominent assets like Bitcoin and Ethereum, much to the delight of enthusiasts in the crypto sphere. Bitcoin, being the most prominent cryptocurrency globally, had experienced a notable decline of around 65% in its market value over the preceding year. This downturn surprised many enthusiasts, with unforeseen events such as the Terra Luna crash, FTX decline, macroeconomic factors, and Binance’s acknowledgement of guilt contributing to market volatility.

The year 2024 will mark Bitcoin’s fourth halving event in the ongoing year, slated for April. It is a significant aspect of Bitcoin’s monetary policy designed to enhance its scarcity by halving the supply growth rate approximately every four years.

Bitcoin’s supply growth rate initially exceeded 10%, but it has since been reduced to approximately 1.75%. This rate will drop even further during the upcoming halving event in April to a mere 0.85%. This halving process will persist until the total supply of 21 million coins is mined, which is anticipated to occur around the year 2140. Presently, about 19.6 million BTC coins are in circulation within the cryptocurrency market.

Geoff Kendrick, the head of crypto research at Standard Chartered Bank, forecasts that Bitcoin’s price will soar to $100,000 by the year’s end, citing the halving event as a potential catalyst for this upward movement.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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Kumar Gandharv
Kumar Gandharv

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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