Bitcoin rose on Monday to its highest level since November 2021, as exchange-traded funds that invest directly in the cryptocurrency attract more capital into the space, while investors await the upcoming “halving” event, which has historically been bullish for bitcoin prices.
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It rose 9.5% over the past 24 hours to nearly $57,000 at one point, according to CoinDesk data. This is approximately 17% below the record high of $68,990, reached in November 2021.
Investors saw major inflows into Bitcoin after the US Securities and Exchange Commission approved 10 Bitcoin ETFs for the first time in January.
They are also looking forward to the so-called “halving” event, which is expected to happen in April.
Halving is a mechanism written into the blockchain algorithm to control the supply of Bitcoin, which is capped at 21 million. Upon halving, the Bitcoin mining reward is halved, meaning miners will receive 50% less Bitcoin for verifying transactions.
The halving is scheduled to occur after every 210,000 blocks mined, or approximately every four years, until the maximum supply of 21 million bitcoins is released. Historically, Bitcoin has seen a price surge months after the halving.
From a technical perspective, with Bitcoin breaking out of a sideways trading range that has been intact since February 10, “this price rally will likely reach targets near $58.4 initially with a potential $62K which should be the last real resistance area before,” Mark wrote. “A potential challenge to previous all-time highs,” Newton, head of technical strategy at Fundstrat Global Advisors, said in a note on Monday.
