Bitcoin valuation started increasing after demand and momentum traders taking positions after a week of consolidation.
Bitcoin went down to the $61,000 range on Friday but still holding its position Stable At $61,000, following its rally of up to $64,000 on February 29. Other top coins,like Ethereum (ETH), Dogecoin (DOGE), Solana (SOL), Ripple (XRP), and Litecoin (LTC) saw minor losses on Friday.
Bitcoin passed the $60,000 mark on Wednesday, nearly approaching it’s all-time high since 2021. The current rise is seen after the approval of a new type of investment indexed to the cryptocurrency.
Bitcoin, peaked to $60,131, which was 6 percent higher to the previous day & was also the highest since November 2021. The cryptocurrency had reached close to the $70,000-mark in 2021, reported Money Control.
Why Is Bitcoin Valuation Rising?
Bitcoin valuation started increasing after demand and momentum traders taking positions after a week of consolidation. According to experts other factors which worked for higher valuation of Bitcoin are like the spot BTC ETF inflows in the US and optimism around the crypto asset class.
Traders invested into bitcoin after April’s halving event which was specifically designed to slow the release of the cryptocurrency. Also the Federal Reserve series of rate cuts also helped in the positive movement of Bitcoin.
Bitcoin’s fixed supply of 21 million coins makes it an attractive alternative for those seeking to preserve their wealth.
Institutions such as Tesla, Square, and MicroStrategy have allocated significant portions of their treasuries to Bitcoin, signaling confidence in its long-term potential as a hedge against inflation and currency devaluation.