Bitcoin price has breached the $57,000 (R1,096,722) for the first time since December 2021 on Tuesday.
The cryptocurrency was trading at around $56,478 (R1,081,619) on Wednesday at 2pm.
Alexander Kuptsikevich, from FXstreet said on Wednesday that, “the price of the Bitcoin rose decisively during active trading in the US, and in the illiquid Asian session, we saw a wave of stop orders triggered, which at times took the price to $57,800 (R1,106,948). Such high levels were last seen in December 2021”.
Kuptsikevich argues that Bitcoin sees no significant barriers to growth to levels just above $60,000 (R1,149,132).
“Bitcoin can quickly go there or around the historical highs at $69,000 (R1,321,501), but the subsequent growth may require a few months of consolidation,” he added.
“Growth breeds optimism, and now there is a proliferation of predictions that the price will soon reach six figures. In our view, the chances of a price rise above $100,000 (R1,915,005) exceed 50% in the 9 to 12-month horizon. And if markets come under pressure from an economic slowdown, it could take more than a year to reach a new level.”
According to FXstreet, Bitcoin rose by 5.31% on Monday and nearly 5% in the early trading session on Tuesday.
“The bull run that began in 2023 is still going strong and shows no signs of stopping. The nearly 5% upswing noted on Tuesday and Monday's 5% has made this move possible,” according to the foreign exchange portal.
This move in value by Bitcoin has liquidated nearly $250 million worth of positions on Monday and a further $120 million on Wednesday, according to CoinGlass.
WHAT HAS CAUSED THE RISE?
According to Forexlive, the United State’s approval of a Bitcoin futures ETF has created optimism across the market.
This regulatory nod opens the doors for institutional investors to jump and invest in Bitcoin that will in turn drive up demand.
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