In recent days, Bitcoin (BTC) has achieved all-time high (ATH) prices against a diverse array of fiat currencies, including the Japanese yen, Malaysian ringgit, Indian rupee, Taiwan dollar, South Korean won, Chilean peso, Australian dollar, Chinese yuan, South African rand, Norwegian krone, and Turkish lira.
Bitcoin has passed all-time highs in 30+ countries, including China and India. pic.twitter.com/63CnC9DE0F
— Balaji (@balajis) February 28, 2024
This trend highlights a decreasing market value for these fiat currencies, attributed to escalating inflation rates which erode purchasing power over time.
Market analysts have noted that Bitcoin has shifted into a price discovery mode after surpassing the critical $57,000 resistance level.
With the next Bitcoin halving event just 49 days away, expectations are high for continued bullish momentum, potentially driving Bitcoin to new record highs, as has been the case in past halving cycles.
Historical data underlines Bitcoin’s dramatic price increases following each halving event, with gains of at least 270% recorded post-halving.
For instance, Bitcoin’s price surged from $12 to $964 within a year after the 2012 halving. Similar patterns were observed in subsequent halvings, with prices jumping from $663 to $2,500 after the 2016 event, and from $8,500 to $68,783 following the 2020 halving.
The driving forces behind each bull cycle have varied, from the retail sector in 2017 pushing BTC to $17,000, to significant institutional investment in 2021 elevating it to $69,000. In 2024, the trend continues with institutional investors playing a pivotal role, as evidenced by the daily net inflows into Bitcoin exchange-traded funds (ETFs), which have approached nearly half a billion dollars.
This demand significantly outpaces the new BTC supply, with the forthcoming halving expected to further constrain supply by cutting the block reward in half.
Currently, Bitcoin is trading at $59,400, marking a 5% increase over the past 24 hours. This surge in price and the anticipated halving event underscore the growing institutional interest and the potential for Bitcoin’s price to reach new heights in the post-halving period.