Bitcoin smashes $21,000 ceiling; experts weigh in on the development

moneycontrol.com:

After months of stagnation, fuelled by the collapse of several large cryptocurrency firms, including the recent collapse of FTX, Bitcoin, the world's largest cryptocurrency by market capitalisation, has broken above the psychologically important mark of $21,000, bringing renewed optimism among investors.

This milestone comes as investors anticipate that the digital asset may have reached a low point and as concerns about inflation continue to drive interest in it.

This marks the first time the digital asset has surpassed $20,000 since November 8 and the 11th consecutive day of rise.

Other major cryptocurrencies such as Ether and Cardano also saw significant gains, with the overall market capitalisation of the crypto market surpassing $1 trillion for the first time since November.

This spike in Bitcoin's value comes on the heels of a report on consumer prices that showed a decline in inflation in January compared to December.

Additionally, the US Federal Reserve plans to slash interest rate increases in response to this cooling, though they intend to continue raising rates until inflation shows more clear signs of slowing.

This has also led to an increase in risk assets, such as the Nasdaq 100 stock index, which has seen six consecutive days of growth.

Bitcoin Whales have resumed their BTC holdings

Raj A Kapoor, Founder, India Blockchain Alliance tells Moneycontrol that 2024 will be the year of Bitcoin's halving event, which possibly is spurring positivity and pushing up Bitcoin prices.

The Bitcoin halving event, which takes place every four years, sees the currency's miner payouts slashed in half (to 3.125 BTC).

Historically, Bitcoin halving events have been successful in establishing long-term bullish drivers for Bitcoin's price