Key Points
On February 28, the price of Bitcoin (BTC) soared to $59,485, marking a new high in two years. It was only 13% short of its all-time high (ATH) of $68,789.
In terms of dollar value, BTC is inching closer to its ATH, but it has already surpassed ATH records against several fiat currencies.
Bitcoin’s Performance Against Fiat Currencies
In recent days, Bitcoin has reached new ATHs against 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.
The ATHs against these currencies suggest that their market value is declining due to increasing inflation.
As inflation rises, the purchasing power of a currency diminishes over time.
Market analysts suggest that Bitcoin is in price discovery mode after breaking the critical resistance of $57,000.
With the Bitcoin halving event only 49 days away, the bullish momentum could potentially push Bitcoin to new highs post-halving, as has been the trend in the past.
Historically, Bitcoin’s price has surged by at least 270% after each halving event.
For example, the Bitcoin price was $12 before the 2012 halving, but it skyrocketed to $964 a year later. Similarly, it was $663 before the 2016 halving and jumped to $2,500 a year later.
In 2020, Bitcoin was priced at $8,500 before the halving, but it increased to $68,783 within a year.
Each bull cycle has a driving factor behind it. In 2017, the retail sector drove the BTC price to $17,000. In contrast, the institutional influx helped BTC rise to $69,000 in 2021.
In 2024, market analysts believe that institutional players are moving the market, as indicated by the daily net inflows into exchange-traded funds (ETFs).
Bitcoin ETFs are experiencing nearly half a billion inflows daily, while the new BTC added to the market is almost one-tenth of the current spot Bitcoin ETF demand.
Analysts are of the opinion that the significant institutional demand amid limited supply, which will be halved in the next 50 days, could be a catalyst for the BTC price post-halving.
As of now, Bitcoin is trading at $59,400, an increase of 5% in the past 24 hours.
