YEREVAN (CoinChapter.com) — The cryptocurrency market has once again captured global attention as it experiences an unprecedented rally in 2024. Bitcoin (BTC), the leading digital currency with a market cap of $1 trillion, spearheads the crypto boom. Its price has soared to an impressive $52,000, reinvigorating the fervor surrounding the cryptocurrency sphere.
Bitcoin isn’t the only digital asset that has surged. Ethereum (ETH), the second-largest crypto, has also showcased remarkable resilience, surging past the $2,800 mark.
This positive shift in prices has catapulted the total cryptocurrency market capitalization to a staggering $1.95 trillion. This marks a monumental milestone as the market last reached these levels in 2022.
According to Antonio Ernesto Di Giacomo, Market Analyst Latam at xs.com, spot Bitcoin ETFs may be behind the recent surge.
The green light by the US Securities and Exchange Commission (SEC) in January 2024 for Bitcoin Exchange Traded Funds (ETFs) has contributed to the boost in market sentiments.
“The effects of this regulatory decision are already being reflected in the observed price movements. Although Bitcoin has been the main protagonist of this rally, other prominent cryptocurrencies such as Ethereum, Binance, Solana and Ripple have also experienced significant price increases,”
the analyst said.
Following the approval of Bitcoin ETFs, speculations around the potential authorization of Ethereum ETFs are gaining steam. According to market watchers, such a move could provide an additional impetus to the market, potentially fueling the uptrend witnessed in the crypto boom in 2024 thus far.
Meanwhile, amidst the prevailing optimism, there is another critical event on the horizon that Di Giacomo points out. The Bitcoin halving event is scheduled for April 2024, less than 62 days away.
According to him, the months leading up to the halving have historically seen a downward trend in Bitcoin prices. This is usually caused by miners who often liquidate their reserves to cover operational costs. Despite the predicted crypto boom in 2024, such a potential oversupply could exert downward pressure on BTC price in the short term.
On the flip side, the months following the Bitcoin halving have seen bullish momentum. After the previous halving in 2020, BTC prices skyrocketed, recording a new all-time high (ATH) above $68,000.
A recent analysis by IntoTheBlock suggests that there is an 85% chance of a crypto boom in 2024. With further rate cuts by the US Federal Reserve in the pipeline, BTC could see a new ATH in the next six months.
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