Bitcoin made history on Friday as it briefly topped $70,000 for the first time ever, sparking excitement among cryptocurrency enthusiasts. With some bullish investors now eyeing $100,000 as the next milestone, the leading crypto asset continues to attract attention and speculation.
Mark Connors, director of research at digital-asset manager 3iQ Corp, believes that bitcoin is on track to reach $100,000 before its next halving event, which is expected to occur around April 20. This prediction comes as exchange-traded funds investing in bitcoin attract institutional inflows, expanding the investor base for the digital currency.
Halving events, which occur every four years and cut the reward for bitcoin mining in half, are designed to control the coin’s supply. This year’s rally before the halving is attributed to a demand shock, rather than the supply shocks seen in previous halving cycles.
The recent filing by BlackRock to add bitcoin to its Strategic Income Opportunities Fund and Global Allocation Fund further strengthens the case for bitcoin in investment portfolios. The potential diversification benefits and enhanced returns offered by bitcoin are becoming more apparent to traditional investors.
While bitcoin continues its rally, ether, the second-largest cryptocurrency by market capitalization, is also seeing gains, trading near $4,000. Investors are eagerly awaiting a decision by the SEC on spot ether ETFs by May 23, with expectations that approval could have a minimal impact compared to bitcoin.
As the cryptocurrency market evolves and institutional interest grows, the future of bitcoin and other digital assets remains uncertain yet promising. With new milestones being reached and traditional financial institutions embracing cryptocurrencies, the landscape of digital finance is rapidly changing.