Bitcoin reached the $57,000 value mark on the 27 February after roaming around the $ 50k value for weeks. It is the closest value it has reached to its last all-time high value of $65,000 and is expected to cross that this time. Bitcoin price has surged more than 11% in a day and is trading at $56,706.75 at the time of writing this blog. The same goes for the trading volume, it has increased by more than  209%.

Because of Bitcoin’s performance, the rest of the altcoins are also impacted by good hikes. Many altcoins including Coti are trending in the crypto market because of the influence of Bitcoin on the rest of the coin’s performance.

How Bitcoin Price Will Hit $100K Mark?

Bitcoin’s performance these days has been spectacular for the overall growth of the crypto market. It almost reached the $70k mark last year and it’s about to hit $60k these days. Based on the popularity and demand of Bitcoin, it’s not that hard to imagine it hitting the $100k mark within the next few years. Let’s look into the few things that have helped the current hike of Bitcoin which will also play a major role in reaching $100k as well.

Bitcoin ETF Is The Backbone Of Bitcoin’s Growth Curve

Bitcoin’s current value is only 20% less than the all-time-high and the experts have predicted for it to go even higher before April starts. The main reason for that is to happen will be the Bitcoin ETF which has recently recorded a cumulative trading volume of $50 Billion within a month of its launch. Earlier SEC approved 11 ETFs on 11 January 2024 triggering the confidence of the community and building the hype for Bitcoin.

In the last 24 hours, the ETF trading volume displayed increased interest and several trades by people. It has increased by more than $3.24 billion.

Microstrategy Has Added 3,000 BTC To Its Collection

Microstrategy recently bought 3000 more BTC worth $155 million. It is a Verginia-based company that is known for being the world’s largest publicly traded owner of bitcoin. It already had a collection of 190,000 worth more than $10.5 billion today. Microstrategy’s Bitcoin buys always give confidence and hope to Bitcoin holders and that leads to a chain of more buying to HODL to reach the best value.

Bitcoin Halving

Bitcoin halving happens once in four years when the users get rewarded for their Bitcoin mining reduced by half. It is getting shorter as there are only 52 more days to go and the investors are rushing for the best position for the event. This is to reduce the rate of creating more Bitcoins and creating a scarcity of the coin leading to increased demand and increased prices.

To mine Bitcoin, the miner uses heavy computational power and solves some mathematical puzzles to receive a reward. The current reward system set for mining is around 6.25 Bitcoin and the worth of that reward will change according to the price fluctuations of BTC in the crypto market. This upcoming Bitcoin halving reduces that amount by half whereas the miners mine crypto to increase the circulating supply of Bitcoin.

Slow Dollar Trading

Statistics show that the Dollar trading was low on Monday and Tuesday and it has shown an inverse relationship with Bitcoin. Between Bitcoin and the US Dollar index, this showcases a little under the -0.65 correlation which indicates that Bitcoin might rise in value when the dollar is declining and vice-versa.

There are a lot of factors that support the price growth of Bitcoin but what holds it back is the inherent risk with the asset.

Data of 5 Feb 2024 by YCharts

Conclusion

Bitcoin is the number 1 cryptocurrency and has the potential to impact the overall crypto market because of its market dominance. With the current price of $56,706.75, the hopes are high for the $100k among the community. We will have to wait for that to happen but it has a very little chance of Bitcoin to clear the milestone in 2024. Read more about the Ethereum ETF release date. 

The post Top Reasons Why Bitcoin Price Will Hit $100k Soon appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am