Report Says Bitcoin Likely To Reach A New All-Time High This Year

Report Says Bitcoin Likely To Reach A New All-Time High This Year

On Tuesday, CCData released a new research report. It revealed that Bitcoin is yet to hit the top of its current appreciation cycle and it may surpass its all-time high this year.

Back in March, Bitcoin had recorded a new all-time high price of $73,000. Since then, the leading crypto token has been trading between $59,000 and $72,000.

The cause

In January, spot bitcoin exchange-traded funds (ETFs) had been approved in the United States. This was mostly the reason why the price of Bitcoin had surged.

According to data from CCData, the ETFs have already seen net inflows of about $14.41 billion.

Thanks to ETFs, investors have been able to buy a product that tracks the price of Bitcoin without buying the crypto itself.

According to crypto opponents, this has been helpful in adding a touch of legitimacy to Bitcoin. It has also helped institutional investors dive into the space.

The bitcoin ‘cycle’ is the period during which the crypto token rises to a new record high. It then falls to enter ‘crypto winter’, or a bear market.

Since its launch, bitcoin has already completed three cycles and this pattern has been seen in all of them.

The cycle

The halving event is also an important part of the cycle. The event sees the reward given to miners decline by 50%. It helps in reducing the supply of Bitcoin in the market.

Usually, halving happens months before the price of the token reaches an all-time high in the cycle. But, things have been different in this cycle.

Bitcoin had climbed to its record high before the halving event took place. This was due to the launch of ETFs in the US.

Since Bitcoin has been trading in a range, it has prompted people to question whether the crypto token has reached the top of its cycle.

The possibilities

The report from CCData has examined the historical price movements of bitcoin. It shows that the digital currency can climb to a new height.

According to the data and research firm, there has always been a period of price increase before the halving event.

This price rises within a period of 366 to 548 days before it eventually reaches the top. The cycle gets longer with every halving because the asset class matures and volatility declines.

The last time the halving event occurred was in April this year. Therefore, there is still some room for the price to rise.

In previous cycles, centralized exchanges also saw a fall in trading activity for almost two months before the halving event. The same seems to have happened in this cycle.

This shows that the current cycle could expand into the next year. According to analysts, the involvement of institutional investors in this cycle has led to a change in trends.

The third quarter is expected to see low trading activity and this could result in more sideways action in price.

But, the data shows that this action is likely temporary and bitcoin could surpass all previous all-time highs.

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