BITCOIN CRYPTOCURRENCY NEWS | ILLUMINATION’S MIRROR
Here’s Why Bitcoin Passed the $50,000 Milestone
These are some of the reasons why Bitcoin has passed $50,000 in 2024 and some predictions about what’s next for the cryptocurrency’s future.
Bitcoin passed $50,000 on February 12th when it reached $50,269.51. This story will highlight a few of the key reasons why Bitcoin has passed the $50,000 milestone that it hasn’t reached since around three years ago, in 2021.
If you haven’t already read my story where I talked about why Bitcoin had the potential to reach $50,000 in 2024 and was correct about it, you may want to learn why it had the potential to reach $50,000. You may also want to learn what Bitcoin halving is from that story since I went in-depth about it, and I’ll be going over more reasons in this story.
Besides the Bitcoin halving that will occur in April 2024, there are many other reasons why Bitcoin passed the $50,000 milestone this year.
Firstly, many cryptocurrency investors are investing now in Bitcoin because they’re aware of the Bitcoin halving that will occur soon. The Bitcoin halving causes Bitcoin to be more rare because less of it will be mined from now on than ever before.
You can think of the Bitcoin halving like gold miners finding less gold after digging so much of it when the gold rush happened. Due to supply and demand laws, the lower the supply of Bitcoin, the higher the price will be since it’s more rare and people want to invest in an asset that not everyone can have. The demand for Bitcoin is rising now before the price of Bitcoin surges after the Bitcoin halving, which lowers the supply of Bitcoin.
Now that the obvious reason is out of the way, we can discuss the less obvious reasons that drove Bitcoin’s price increase.
Bitcoin ETFs are gaining popularity with cryptocurrency investors, and this new increase in demand has caused rapid growth in Bitcoin’s price. In only one day, Bitcoin grew in price by $2,000 on February 12th. Demand is a major factor that determines Bitcoin’s price.
According to Ben Laidler, global markets strategist at eToro,
“With the fourth bitcoin halving, a first Fed interest rate cut and potential ethereum spot ETF approval, all are significant for what is the smallest, youngest and most retail-dominated asset class.”
As Laidler mentioned, the Federal Reserve is planning on cutting interest rates by a small amount. However, even the smallest amount will allow investors to invest more money as rates for auto loans, mortgages, and many other loans decrease slightly.
Spot Ethereum ETFs also have a good chance of increasing the price of Bitcoin because Ethereum and Bitcoin, as similar cryptocurrencies, practically go hand in hand with price increases. Ethereum’s price will almost always rise when Bitcoin’s price rises, and vice versa.
Overall those are some of the main reasons why Bitcoin passed $50,000 and why it might continue growing even more valuable in 2024.
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