The price of Bitcoin has experienced an increase of 2,7% compared to its price yesterday.
Bitcoin has once again surpassed the $71.000 barrier, approaching its current all-time high (ATH), which was established last March. According to data from the CoinMarketCap platform, the price of Bitcoin is very close to breaking this ATH and establishing another milestone in the market.
Apparently, the current rise in bitcoin price is being driven by investor optimism over the possibility of the Federal Reserve cutting interest rates later this year. In addition to this, investors and the crypto community are celebrating the regulatory approval that was granted to Bitcoin spot ETFs in two new jurisdictions: Australia and Thailand.
Source: CoinMarketCap
On Tuesday, a new Bitcoin exchange-traded fund began trading on the Cboe Australia exchange, a milestone that further legitimizes the leading cryptocurrency as an investment asset. Also, Thailand's Securities and Exchange Commission (SEC) gave the green light to the first Bitcoin-based investment fund of its kind, following the example of Australia, Hong Kong and the United States.
Bitcoin is approaching its current ATH
According to Bloomberg, the expectations of world markets regarding the possible reduction in interest rates by the United States FED are positively impacting the price of the cryptocurrency. However, other analysts also attribute much of BTC's current price rise to the halving cycles, which took place on the Bitcoin blockchain last April.
Analysts have been comparing the behavior of the bitcoin price in the different cycles of the history of the halvings of the blockchain network. According to the Bitcoin Halving Price Index, the price of the leading cryptocurrency could rise exponentially in the coming months, if the history of previous cycles repeats itself.
Optimism about Bitcoin price
Bitcoin is becoming one of the most valued assets in the world, while investor interest continues to rise. Recently, head of digital asset strategies at Fidelity Investments, Matt Horne, spoke to CNBC about the allocation investors should be allocating to the cryptocurrency. Although he did not mention the future price that Bitcoin could have, Horne emphasized that a small allocation to the market-leading cryptocurrency could be convenient for investors, without posing a risk to financial stability.
The Fidelity executive said that an allocation between 1% and 5% to Bitcoin could help investors enjoy the advantages that this crypto asset has as a reserve asset and value hedge.
On the other hand, Mike Novogratz, CEO of Galaxy Digital, highlighted the importance of changes in the political environment in the United States, which could become a possible catalyst for the bitcoin price and cryptocurrencies.
Novogratz believes that more favorable regulation for the crypto industry in the country could not only accelerate the development of this market, but also drive the price of Bitcoin towards new all-time highs.
The CEO of Galaxy Digital believes that the price of Bitcoin would reach a new value of 6 figures this year, if US legislation is adjusted to encourage the development and healthy growth of cryptocurrencies and digital assets.
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