Bitcoin, the most widely used and largest cryptocurrency in the world, experienced a 1.5% increase, reaching $29,503 in value, while its market capitalization was recorded at $572 billion. The volume of trade amounted to $24.8 billion. The important question is whether Bitcoin price to reach $50,000 soon or not. Let’s take a look at the five reasons in more detail.
How has the Bitcoin price moved in the last few days?
Bitcoin Price: BTC/USD Weekly chart showing the price – GoCharting
In recent days, the Bitcoin price has been able to rise once more. The Bitcoin price has risen by more than 4.5% in the last seven days. The price rose well above the $ 29,000 mark once more.
Over the last two weeks, the Bitcoin price has risen sharply, breaking through the $30,000 resistance level for the first time in 2023. However, after a few days, the Bitcoin price fell to $28,000 and then back to $27,000.
Why did the Bitcoin price skyrocket once more?
After falling to $27,000, the Bitcoin price stabilized above the mark once more. As a result, a return above $28,000 appeared possible in the coming days.
BTC has surged by over 80% since the start of this year, surpassing several major assets and offering impressive returns to those who purchased BTC during dips.
The industry is thrilled to witness the world’s largest cryptocurrency reach new highs, with experts like Marshall Beard, Chief Strategy Officer at Gemini cryptocurrency exchange, predicting that Bitcoin will break its all-time highs this year, possibly reaching the $100,000 price mark, which would require a 270% increase to reach the level of $100,000. Paolo Ardoino, Chief Technology Officer at Tether, also has an optimistic outlook, suggesting that Bitcoin could retest its all-time high of almost $69,000.
Bitcoin advocates consider it a “safe-haven investment” or “digital gold” that can provide investors with attractive returns or a good hedging opportunity in times of uncertainty. As a result, 2023 seems to be a promising year for Bitcoin. The recent surge in Bitcoin’s price has been largely due to hopes that the U.S. financial and banking situation will reduce the likelihood of more aggressive interest rate hikes by the Federal Reserve.
Can Bitcoin Price Reach $50,000 Soon? Five Reasons
1. Positive business figures from the United States
Two of the world’s largest technology companies were able to present positive figures from the United States. Microsoft and Alphabet (Google) both reported higher-than-expected quarterly earnings. In the past, the Bitcoin price has been able to rise due to positive developments from tech companies. This was also a factor in this time’s price increase.
2. Positive expectations for the next FED meeting
The US Federal Reserve Bank meeting on May 3rd will reveal whether interest rates for the US dollar will be raised further. A 0.25 percentage point increase is expected. Because of the large number of companies in the United States, there is less fear of a higher jump. The key interest rate could even remain unchanged. As a result, there is renewed optimism in the cryptocurrency market.
3. Short-term consolidation only
The recent rise in the Bitcoin price has demonstrated that the bulls only saw the recent drop as a short-term consolidation. The longer the decline lasted, the more likely it was that a bearish trend had formed. The surge above $28,000 was a bullish sign, and the price of Bitcoin should rise above $30,000. The bulls remain optimistic about rising prices.
4. Bitcoin Halving
Bitcoin has a built-in mechanism known as halving, which reduces the rate at which new Bitcoins are created. This mechanism occurs every four years, and the next halving event is expected in 2024. The previous halving events have led to a significant increase in the price of Bitcoin, and the upcoming halving event could further boost its price.
5. Scarcity
Bitcoin has a limited supply, with only 21 million coins in circulation. As the demand for Bitcoin continues to grow, the scarcity of the cryptocurrency could play a significant role in driving up its price. The scarcity factor also makes Bitcoin a valuable asset, which could further increase its price.
Therefore, the current state of the cryptocurrency market indicates that Bitcoin could reach $50,000 soon. Several factors contribute to this optimistic forecast, including positive business figures from major technology companies, positive expectations for the next FED meeting, short-term consolidation, the upcoming Bitcoin halving event, and the scarcity factor.
Despite the inherent volatility of the cryptocurrency market, these factors suggest that Bitcoin’s price may continue to rise in the near future. As always, investors should exercise caution and carefully monitor market trends before making any investment decisions.
Conclusion
Bitcoin is a subject of various viewpoints and forecasts – some anticipate a positive outcome while others predict a negative one. Ultimately, the future of Bitcoin remains uncertain and can only be determined with time. Despite this, Bitcoin has demonstrated its resilience and has the potential for a remarkable recovery. Many seasoned professionals have speculated that the Bitcoin market would soon collapse, but over the last ten years, it has remained a popular choice for investors and has even led to significant profits for some.