bitcoin (btc), the largest cryptocurrency on the market, has seen an extraordinary surge in bullish momentum, breaking patterns from previous cycles and achieving a staggering 60% price increase in the last month. Today, bitcoin has surpassed its previous record, reaching a new its highest point (ATH) and is currently trading at $69,200.
bitcoin price rise
The success of bitcoin spot ETFs, which have been trading for just over seven weeks, has opened the doors to both institutional and retail investors. The approval of these investment vehicles by the SEC has provided a regulated and accessible entry point into the cryptocurrency market. This development has fueled increased interest and confidence, leading to increased demand for btc and driving its price to new heights.
Now, with all signs pointing to further gains for the cryptocurrency, crypto analyst Mark Harvey has made encouraging comments. predictions about the prospects of bitcoin.
One factor Harvey highlights is the potential erosion of confidence in the traditional banking sector due to the failure of regional banks and subsequent bailouts. This could lead people to look for alternative financial systems that offer tamper-proof qualities, such as btc.
Harvey also anticipates that the Federal Reserve (Fed) and the government can respond to financial challenges by lowering interest rates and increasing the money supply. In such a scenario, an “unplanned and abrupt” emergency shortcut could occur, further increasing btc’s appeal as a hedge against traditional market volatility, Harvey further noted.
Institutional appetite for btc grows
The analyst has also highlighted that institutional investors, including pension funds, insurance companies, endowments, foundations and mutual funds, are showing a growing appetite for bitcoin. Harvey further noted that as they look to diversify their portfolios, btc limited resources and long-term appreciation potential make it an attractive asset to hold in your investment mix.
As these institutional players get closer to their target portfolio allocations, they are likely to adopt a “hold” strategy for bitcoin, further driving its demand and price, Harvey believes.
Additionally, demographic changes and the “baby boom effect” are expected to contribute to the growth of bitcoin. “Baby boomers, as Harvey refers to those who own a significant portion of the wealth in America, are seeking to preserve or increase their wealth.
Currently, the analyst believes they are “underexposed” to bitcoin, but as demographics change and wealth is transferred to younger generations, more assignment bitcoin is expected to become a retirement asset.
All of this, along with the bullish sentiment surrounding the cryptocurrency's price action and the success of spot ETFs, are signs that btc has no limit and that the top of this cycle has yet to be reached.
Featured image from Shutterstock, chart from TradingView.com
