Bitcoin soars to the $66,000 level, with a market capitalization of $1.309 trillion. Where are prices headed?

Bitcoin prices on Friday showed resilience, recovering from the previous day's decline. This recovery, coupled with four consecutive days of positive inflows into Spot Bitcoin Exchange Traded Funds (ETFs), points to an encouraging trend for investors.

While Bitcoin recovered, other crypto tokens such as Solana, Cardano, Polkadot, and Avalanche also performed well, posting gains of up to 4%. However, the global cryptocurrency market capitalization fell slightly by 0.29%, reaching approximately $2.38 trillion in the past 24 hours.

The world's largest cryptocurrency remained firmly within the narrow trading range of $60,000 to $70,000 that it has held for the past two months, seeing little catalyst for a breakout due to lukewarm risk appetite.

Also read: SEBI advises regulators to supervise crypto trading, RBI still recognizes 'macro risks'

Bitcoin is poised for a solid week as expectations rise for the US Federal Reserve to cut interest rates. After today's rally, Bitcoin has achieved significant gains over the past seven days, rebounding from last week's lows of $60,000.

The cryptocurrency is up about 8% from last Friday's lows, mainly due to a weaker dollar and signs of easing inflation in the United States.

“Bitcoin has soared past the $65,000 mark, registering an astonishing 7% gain in less than 24 hours. In the past, such a leap forward would have drawn many newbies to Web3. But today's situation shows that new entrants are looking for more than just price volatility. Perhaps it's time for the ecosystem to prioritize user-friendly applications. “Price may attract investors, but specific use cases appeal to a broader audience,” said Nishal Shetty, co-founder of Shadyam.

According to a report by CoinMarketCap, Bitcoin's market capitalization has soared to $1.309 trillion, and its market power now stands at 54.69%. During this period, BTC trading volume decreased by 27.4%, totaling $30.9 billion.

“Bitcoin is in the midst of a bullish cycle. Market capitalization is increasing faster than the realized ceiling, and this trend typically lasts for about two years. If this pattern continues, the bullish cycle will end in 2025. It could end by March. Another reason for the rally could be that May's ETF inflows have already offset April's outflows,” said Pi42 co-founder and CEO. said Avinash Shekhar, CEO.

Also read: Binance all set for Kucoin’s return to India

Where is the price of Bitcoin heading?

According to market experts, in the short term, Bitcoin's price trajectory can be influenced by technical indicators, market sentiment, and the actions of institutional investors.

The appointment of former BlackRock executive Salim Ramzi as Vanguard's new CEO has also fueled speculation that the investment giant may embrace cryptocurrencies.

“Analysts are wondering whether Vanguard, under the leadership of the crypto-friendly ETF veteran from BlackRock, will eventually become bullish on Bitcoin. The 13F filing reveals that 1,028 companies with over $100 million in assets under management now own a combined $11 billion in Bitcoin, with Millennium Management emerging as the largest holder with $2 billion. ,” said Rajagopal Menon, vice president of WazirX. live mint.

Also read: Why Africa is the next frontier for cryptocurrencies.

Siddhartha Gupta, SVP of Business and Strategic Alliances at CoinDCX, said the long-term outlook for Bitcoin is due to limited supply and growing adoption as a store of value and hedge against inflation. It remains tied to Bitcoin's fundamentals.

“The approval of ETFs in the US and Hong Kong and ETNs in London has strengthened their legitimacy and price stability over time. However, potential It is important to remain mindful of risks and uncertainties.While past trends and halving cycles provide valuable insight, the future trajectory of Bitcoin price is likely to be shaped by a complex interplay of factors. high, making accurate predictions difficult,” said Mr.