Experiencing a notable resurgence, Bitcoin has exceeded the $40,000 threshold, achieving a milestone not witnessed since late April 2022. The latest surge propelled it to a peak not seen in 19 months on Dec. 3. Santiment, a cryptocurrency analytics platform, observed a jubilant atmosphere as Bitcoin crossed the $40,000 mark. The firm attributed the ascent to a blend of apprehension and excitement surrounding impending Exchange-Traded Fund (ETF) confirmation dates.
This recent surge also establishes a new year-to-date pinnacle for Bitcoin. It showcased an impressive gain of more than 140% since the start of the year. However, it is noteworthy that BTC remains approximately 42% below its record high of over $69,000, documented on Nov. 10, 2021. At press time, BTC was trading at $41,206.35 with a 4.65% surge over the last 24 hours.
A recent report from IntoTheBlock disclosed that the quantity of Bitcoin held by addresses with 1,000 BTC or more has reached its highest level since December 2022.
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Bitcoin slated to hit $125K?
Significantly, Markus Thielen, the head of research at Matrixport, has issued a bold projection for Bitcoin’s future course. In a communication dated Nov. 30, Thielen envisions Bitcoin surpassing $60,000 by April 2024 and achieving a remarkable $125,000 by the conclusion of 2024. Citing historical data, Thielen points out that BTC typically enters a bullish cycle following three consecutive bear markets. This analysis indicates that 2023 marks the onset of another three-year bull market.
Thielen’s forecast is intricately linked to the impending halving event in mid-April 2024, where BTC mining rewards will undergo a 50% reduction. Historically, miners have stockpiled BTC in anticipation of such events, resulting in price surges of over 200%. Drawing from this historical trend, Thielen envisions Bitcoin reaching the $125,000 milestone.
The resurgence of Bitcoin aligns with heightened speculation surrounding the approval of a spot Bitcoin exchange-traded fund (ETF) in the United States. Standard Chartered, in a communication dated Nov. 28, predicts that Bitcoin could attain a six-figure value before the conclusion of 2023, attributed to the “earlier-than-expected introduction” of spot ETFs in the U.S.
As the cryptocurrency landscape continues to evolve, the dynamic interplay between market sentiment, regulatory advancements, and historical trends is poised to shape the trajectory of BTC and other digital assets in the foreseeable months and years. Investors and enthusiasts are eagerly anticipating the unfolding narrative of Bitcoin’s journey beyond the $40,000 milestone and the potential realization of Matrixport’s ambitious $125,000 projection by 2024.
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