Bitcoin exceeded its highest point in two years, hitting the USD 69,000 mark during Asia trade on Tuesday. This occurrence seems to have brought long-awaited joy to crypto enthusiasts, given the impressive performance of the decentralised cryptocurrency over the last month, continuing the upward trend in March.
In February, Bitcoin showcased a positive trajectory for over three instances, surpassing its previous achievements. The initial milestone was achieved when it crossed the USD 50,000 mark, followed by another surge of 22 per cent, reaching USD 52,05 and eventually hitting the USD 57,000 milestone.
While this surge garnered global attention, Indian crypto-corporates have also shown enthusiasm about the present growth, instilling a sense of optimism.
What Experts Say
Vikram Subburaj, CEO at Giottus, a Crypto Platform, highlighted Bitcoin’s ongoing surge, referring to it as a bullish trend that reached an unprecedented peak of USD 69,200. Subsequently, he also pointed to a decline to USD 59,700 during a volatile sell-off.
Subburaj said that the price is hovering around USD 65, 000 and is expected to rise further, urging Indian investors to be in a position to use investment tools like SIPs to average out correctional price dips.
He stressed it is important to acknowledge Bitcoin prices will reach significantly higher levels before the halving event, which serves as a valid indication of prosperous times ahead in the market.
Edul Patel, CEO at Mudrex told BW Businessworld that in the ongoing bull market, 70 per cent of individuals are experienced crypto investors and traders, with the remaining 30 per cent being newcomers who have recently joined the market.
"India is preparing to introduce crypto taxation for the second time, the situation is becoming clearer, and we can expect to see more crypto investors in India diversifying into this alternative asset class in the upcoming months" - Edul Patel, CEO at Mudrex
Amidst the strong resurgence in user activity in India as investors turn bullish in the wake of the Bitcoin ETFs in the US, the possible approval of Ethereum ETF and the scheduled Bitcoin Halving event, crypto platform CoinSwitch on Wednesday said that it had surpassed two crore registered users, becoming the first in India to touch the milestone.
CoinSwitch claims that in just the last two weeks, the crypto trading volumes on its platforms have increased 7x and the number of users in profit has increased by over 80 per cent.
Ashish Singhal, Co-founder at CoinSwitch said, “Bull markets are a magnet for new users, and crypto is now on a bullish path.”
What's Driving Bitcoin Surge?
As per Chief Analyst Ryan Lee from Bitget Research, the recent rise in Bitcoin can be attributed to multiple factors. The first is the approval of the Bitcoin ETF by US SEC, enabling investors worldwide to invest through regulated channels. Additionally, the temporary decrease in Bitcoin ETF adoption played a role in the surge, largely influenced by position changes among Grayscale holders and equity holders selling off their assets.
Lee also said that the end of grayscale's sell-off was another significant factor contributing to the growth of Bitcoin, which marked the start of daily net inflows and outflows in the Bitcoin ETF market, a pattern that remains consistent and underscored another significant reason for Bitcoin growth.
"Bitcoin’s fourth halving is coming soon, and the market is confident that the price of Bitcoin will reach a record high after this halving. At the same time, the Federal Reserve will also start an interest rate cut cycle this year, which is a good signal for risk assets and emerging markets," he added.