At the beginning of the fiscal year 2023-24, Bitcoin was valued at approximately $28,500. However, by March 2024, its price had surged dramatically to an impressive $73,750.
In the year starting April 1, 2023, Bitcoin has had a remarkable run. Bitcoin gained more than 50% by mid-June 2023, rallying alongside tech stocks to trade around $26,000. It remained close to $27,000 by late September, before starting a climb that would close the year significantly higher.
Also read: Will Bitcoin’s price surge bail out Sam Bankman-Fried? FTX founder’s sentence hinges on crypto’s rollercoaster ride
“As we look back on Bitcoin’s performance in FY24 and look ahead FY25, the optimism surrounding this digital asset remains high. The involvement of institutions and the anticipation of the 4th Bitcoin halving signal a crucial moment for the crypto. The current upward trend in Bitcoin’s price resembles the bull markets of 2020 and 2021, especially as Bitcoin achieves new all-time highs. Despite occasional high intraday selling, the market has shown resilience, with strong buying activity in response to dips,” Sumit Gupta, co-founder, CoinDCX, told Livemint.
Gupta further added, “The current upward trend in Bitcoin’s price resembles the bull markets of 2020 and 2021, especially as Bitcoin achieves new all-time highs. Despite occasional high intraday selling, the market has shown resilience, with strong buying activity in response to dips.”
In January 2024, the SEC approved Bitcoin ETFs, and 11 fund managers were given the green light to list funds. Over the past six months, the price of Bitcoin has more than doubled, suggesting a strong and enduring uptrend.
Looking at the performance from the start of the year, there has been a healthy increase of 67.05%, indicating that Bitcoin has been on a steady climb since January. Last month alone saw a jump of nearly 37% in its price.
Also read: London Stock Exchange to launch Bitcoin and Ethereum ETN market on May 28
“With billions of dollars pouring into Bitcoin ETFs, enhancing the cryptocurrency’s profile. The newly transitioned open ended ETF Grayscale and the other 10 new ETFs have all attracted fresh funds since trading began on January 11. The ETFs have been buying an average of 10,000 Bitcoins daily, which is a stark contrast to the 900 Bitcoins that are mined each day. With a Bitcoin “halving” event on the horizon in April 2024 — which will reduce the number of new Bitcoins entering the market each day to just 450 — the stage is set for an even more dramatic shift in supply and demand in FY 2025,” Rajagopal Menon, VP, WazirX, told Livemint.
Outlook in FY25
Experts further say that as more institutions are getting involved and the introduction of new Bitcoin-related financial services, Bitcoin’s prices is anticipated to remain on a positive trajectory in 2025.
“As we approach the pivotal event of Bitcoin halving in April, we are hopeful for another great year for Bitcoin enthusiasts and investors alike,” said Vikram Subburaj, CEO, Giottus Crypto Platform.
He further said, “Currently, the Crypto Fear and Greed Index is around the 80 mark, in the ‘extreme greed’ zone. This shift is a clear indicator of the market’s bullish sentiment, especially as we edge closer to the halving event. This sets the stage for Bitcoin to potentially retest its high at $73,000. Such a consolidation could pave the way for BTC to explore new price horizons, reaffirming our belief in its robust market dynamics.”
Also read: Standard Chartered raises year-end target of Bitcoin to $1,50,000
As we enter into FY25, experts anticipate an increase in Bitcoin Spot ETFs’ inflows and sustained retail interest to be key drivers.
“Looking ahead to FY25, while precise predictions remain challenging, the overarching trend for BTC is undeniably optimistic. The anticipated increase in Bitcoin Spot ETFs’ inflows and sustained retail interest are expected to be key drivers sustaining vibrant market activity. For Indian investors, this period represents a strategic window to consolidate positions and realize profits, navigating the market’s ebbs and flows with informed confidence,” Subburaj said.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates.
More
Less
Published: 29 Mar 2024, 09:35 PM IST