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Bullish run: Bitcoin’s value reaches highest point in weeks

This positions Bitcoin, the world's oldest and largest cryptocurrency, with a $1.3 trillion market capitalization, accounting for more than half of the $2.5 trillion global cryptocurrency market cap.

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Bitcoin is starting the week on a high note, having reached monthly highs over $67,000 over the weekend and early this morning.

The price of Bitcoin slightly retraced to $66,868.04 after a minor drop of 0.4% in the past 24 hours, according to data from CoinGecko. This positions Bitcoin, the world’s oldest and largest cryptocurrency, with a $1.3 trillion market capitalization, accounting for more than half of the $2.5 trillion global cryptocurrency market cap.

The optimistic price charts have provided some relief to analysts. Pseudonymous crypto trader Jelle noted on Twitter, “Bitcoin broke the local downtrend, reclaimed the previous cycle highs – and now consolidates around $67,000. It’s time to push back into the seventies, and beyond.” This sentiment follows Bitcoin billionaire Arthur Hayes’s recent prediction of choppy and volatile prices before eventual improvement.

Bitcoin’s price surge to $67,000 marks its highest point since the halving event on April 19. Data from CoinMarketCap indicates that Bitcoin has increased by about 3% in the last day and more than 9% in the past week.

Currently, Bitcoin is priced at $66,750. The present range is forming a bullish continuation pattern, suggesting that a breakout could see Bitcoin reach new record highs. Over the last three weeks, Bitcoin has demonstrated remarkable optimism, with a 10% increase from $56,500 to $67,654.

This rise is part of a broader trend fueled by increased trading volumes and a shift in market sentiment towards buying on dips. Recent market indicators confirm that Bitcoin is breaking out of an inverted head-and-shoulders pattern, with a technical price target of approximately $75,000.

Last month’s dip to below $57,000 was influenced by various factors, including geopolitical unrest, waning investor excitement over new spot exchange-traded funds (ETFs), and concerns about the Federal Reserve’s policies. However, Bitcoin’s value surge this year has largely been driven by new investors through these ETFs, which have attracted significant capital inflows.

Since the introduction of Bitcoin ETFs, the amount of Bitcoin held by addresses with more than 1,000 BTC has increased by 250,000 BTC, bringing whale holdings back to levels seen before the collapse of FTX. Data from Bitcoin brokerage River shows that by the end of March, spot Bitcoin ETFs were held by about 13 of the top 25 U.S.-based hedge funds.

Although Bitcoin’s current price remains below its all-time high of $73,737 reached in March, the trend is upward. Analysts at global investment firm Bernstein have increased their price target for Bitcoin from $80,000 to $90,000, correlating with the cryptocurrency’s recent surge. In their report, analysts Gautam Chhugani and Mahika Sapra highlighted that “we continue to find bitcoin miners compelling buys for equity investors seeking exposure to the crypto cycle” due to the bullish cryptocurrency market, strong ETF inflows, aggressive miner capacity expansion, and record-high miner revenues. The significance of the Bitcoin halving and its impact on supply cannot be overlooked. As with any asset, the relationship between supply and demand is critical to its value. Provided that demand for Bitcoin remains steady, any reduction in supply will likely drive up its price, reinforcing the optimistic outlook for Bitcoin in the near future.

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