Bitcoin (BTC), the largest cryptocurrency in the market, has experienced an extraordinary surge in bullish momentum, breaking previous cycle patterns and achieving an astonishing 60% price increase in the past month. Today, Bitcoin has breached its previous record, reaching a new all-time high (ATH) and currently trading at $69,200.
BTC reaching new all-time high of $69,200 on the daily chart. Source: BTCUSD on TradingView.com
Bitcoin’s Price Surge
The success of Bitcoin spot ETFs, which have been trading for just over seven weeks, has opened doors for both institutional and retail investors. The SEC’s approval of these investment vehicles has provided a regulated and accessible entry point into the cryptocurrency market. This development has fueled heightened interest and confidence, leading to increased demand for BTC and propelling its price to new heights.
Now, with all signs pointing to further gains for the cryptocurrency, crypto analyst Mark Harvey has made encouraging predictions about Bitcoin’s prospects.
One factor Harvey highlights is the potential erosion of trust in the traditional banking sector due to the failure of regional banks and subsequent bailouts. This could drive individuals to seek alternative financial systems that offer tamper-proof qualities, such as BTC.
Harvey also anticipates that the Federal Reserve (Fed) and the government may respond to financial challenges by lowering interest rates and increasing the money supply. In such a scenario, an “unplanned and abrupt” emergency rate cut could transpire, further boosting 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 seek to diversify their portfolios, BTC’s limited supply and potential for long-term appreciation make it an attractive asset to hold in their investment mix.
As these institutional players approach their target portfolio allocations, they are likely to adopt a “hold” strategy for Bitcoin, further driving its demand and price, Harvey believes.
In addition, demographic shifts and the “baby boomer effect” are expected to contribute to bitcoin’s growth. “Baby boomers, as Harvey refers to those who hold a significant portion of the wealth in the United States, are looking to preserve or increase their wealth.
Currently, the analyst believes they are “underexposed” to Bitcoin, but as demographics change and wealth transfers to younger generations, a greater allocation to Bitcoin as a retirement asset is expected.
All of this, coupled with the bullish sentiment surrounding the cryptocurrency’s price action and the success of the spot ETFs, are signs that BTC has no limit and that the top of this cycle is yet to be reached.
Featured image from Shutterstock, chart from TradingView.com
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Author: Ronaldo Marquez
