Bitcoin Touches $72,000 Mark; What’s Driving Surge In Cryptocurrency Market?

The cryptocurrency has recently crossed its own milestone of $70,000 the main reason, as highlighted by the experts behind the Bitcoin rally, is the upcoming halving event in April.

On March 11, Bitcoin again broke all the records to touch $71,577 with a significant daily increase of 2.53%. It went down below $68,000 earlier in the day.

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The cryptocurrency has recently crossed its own milestone of $70,000 with a positive support in the ongoing rally. The main reason, as highlighted by the experts behind the Bitcoin rally, is the upcoming halving event in April.

Let Us Take A Look At reason behind recent surge in Bitcoin’s Rally

Why Is Bitcoin Seeing a Surge?

• London Stock Exchange’s to be accepting Bitcoin and Ethereum Exchange-Traded Notes (ETNs) from the second quarter of 2024, the surge in the cryptocurrency is seen
• The halving event, planned on April 20 at block 840,000, is predicted by all the experts to strengthen Bitcoin’s bullish momentum.
• Earlier, Bitcoin Exchange-Traded Funds (ETF) were accepted by the US Securities and Exchange Commission (SEC) which had led to a surge in cryptocurrency as major financial institutions like Blackrock, Vanguard, Valkyrie, Vanek, and Fidelity launched their ETFs.
• Cumulative inflow of institutional money into Bitcoin through ETFs crossed $41 billion in the last two months is also another reason behind the rally.

Factors Impacting Bitcoin Surge In Recent Times

1. Factors like regulatory developments, Institutional adoption, macroeconomic trends, and investor sentiment have influenced Bitcoin price movements.
2. Historically Bitcoin’s price rallied and touched all-time highs prior to four/five months of the halving event and then major investors again focused on Bitcoin.

Retail Investors In Bitcoin

CoinSwitch’s Chaturvedi told Moneycontrol that retail participation is still nowhere close as the mania was seen in 2021, but he believes that the interest in crypto as an asset class will become more mainstream.

“Even though most experts were predicting such flows for the entire year of 2024, the speed of accumulation and subsequent price rise were unexpected,” he added, referring to the quick spike in volumes, stated in the report.