While Bitcoin was recovering, other crypto tokens, including Solana, Cardano, Polkadot, and Avalanche, also showed strength, posting gains of up to 4%. However, the global cryptocurrency market cap saw a slight dip of 0.29 per cent, reaching approximately $2.38 trillion over the past 24 hours.
The world’s largest cryptocurrency stayed firmly within a narrow trading range of $60,000 to $70,000 that has persisted over the past two months, encountering few triggers to break out due to a lukewarm risk appetite.
Also read: SEBI recommends regulators to oversee crypto trade, RBI still sees ‘macro risk’
Bitcoin is poised for a robust week amid rising hopes for US Fed rate cuts. After today’s increase, Bitcoin has achieved significant gains over the past seven days, rebounding from a low of $60,000 last week.
The cryptocurrency is up approximately 8% from last Friday’s lows, primarily driven by a weaker dollar and indications of easing U.S. inflation.
“Bitcoin soared past the $65,000 mark, showing a remarkable 7% gain within 24 hours. In earlier times, such a jump would have attracted many newcomers to Web3. However, today’s landscape suggests newcomers seek more than just price fluctuations. Perhaps it’s time for the ecosystem to prioritise user-friendly applications. While prices may draw in investors, tangible use cases appeal to the broader audience,” said Nischal Shetty, Co-founder of Shardeum.
Bitcoin’s market cap soared to $1.309 trillion, and its market dominance now stands at 54.69%, as reported by CoinMarketCap. During this period, BTC’s trading volume decreased by 27.4%, totalling $30.9 billion.
“Bitcoin is in the middle of the bull cycle. Its market cap is growing faster than its realised cap, a trend that typically lasts around two years. If this pattern continues, the bull cycle might end by April 2025. Another reason for the boost could be the ETF inflows in May that have already offset April’s outflows,” said Avinash Shekhar, co-founder and CEO of Pi42.
Also read: Stage set for return of Binance, Kucoin to India
Where are Bitcoin prices headed?
According to market experts, in the short term, Bitcoin’s price trajectory could be influenced by technical indicators, market sentiment, and institutional investors’ actions.
Also, the appointment of Salim Ramji, former BlackRock executive, as Vanguard’s new CEO sparked speculation that the investment giant could embrace crypto.
“Analysts are wondering whether Vanguard, under the leadership of an ETF veteran from the crypto-friendly BlackRock, would finally turn bullish on Bitcoin. This surge also followed the 13F filings revelation that 1,028 firms with over $100 million in assets under management collectively own $11 billion in Bitcoin as of March 2024, with Millennium Management emerging as the largest holder at $2 billion,” Rajagopal Menon, VP, WazirX told Livemint.
Also read: Why Africa is crypto’s next frontier.
Looking ahead, the long-term prospects for Bitcoin remain tied to its fundamentals, including its limited supply and growing adoption as a store of value and hedge against inflation, according to Siddharta Gupta, SVP, Business and Strategic Alliances, CoinDCX.
“The approval of ETF in US & Hongkong and ETN in London had bolstered its legitimacy and price stability over time. However, it’s crucial to remain mindful of potential risks and uncertainties, including regulatory developments, technological advancements, and macroeconomic shifts. While historical trends and halving cycles provide valuable insights, the future trajectory of Bitcoin prices will likely be shaped by a complex interplay of factors, making precise predictions challenging,” Gupta said.
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Published: 17 May 2024, 08:39 PM IST
