Bitcoin surpasses $65,000, the Halving effect is looming!

Bitcoin continues its meteoric rise, exceeding $65,000 and now approaching its all-time high. This remarkable performance comes just weeks before the highly anticipated “Halving” event.

Bitcoin crosses the $65,000 mark

The queen of cryptos has just passed a symbolic threshold by establishing a new annual record at $65,000, a level not seen since November 2021 when it reached its historic peak of nearly $69,000. Driven by a massive resurgence of interest from institutional investors, Bitcoin now seems unstoppable in its race towards new highs.

During European trading sessions, the leading cryptocurrency evolved to less than 8% below its absolute record level of $69,000 set in November 2021. A remarkable performance that comes just weeks before the much-awaited “Halving” event, the planned halving of rewards allocated to miners.

This remarkable performance, recorded during the European trading sessions, places the queen crypto less than 8% away from its all-time high in November 2021. A remarkable performance that comes just weeks before the highly anticipated “Halving.”

Starting the year 2024 at around $44,000, Bitcoin has climbed nearly 44% since, thus offering substantial gains to its long-term holders.

However, this meteoric ascent has not been without turbulence, marked by a violent correction that had seen it plummet to $38,500 in the wake of the Spot Bitcoin ETF approval, which then unsettled a portion of the markets.

After this transient setback, Bitcoin rapidly regained its luster, reaching $64,000 last week, before fluctuating for a few days around $60,000. It was finally on the night of March 4th that the symbolic $65,000 threshold was definitively crossed.

Record Liquidations and the Shadow of the Halving

While this surge delights investors, it does not come without impact on the market. According to Coinglass data, no less than $230 million in positions have been liquidated in the last 24 hours, with $70 million on Bitcoin alone, the majority being short positions.

More importantly, this bullish rally occurs just weeks before the much-anticipated “Halving” event which, by halving mining rewards, could significantly impact Bitcoin’s supply on the markets.

Historically, while each “Halving” has been associated with subsequent major price increases, a price downturn has consistently preceded such events, thus setting the stage for a future bullish rally. However, this is not the case this time, casting uncertainty over the sustainability of the current frenzied appreciation.

Nonetheless, with BTC now trading less than 8% below its historic all-time high, massive demands for Bitcoin ETFs and the powerful catalyst of the upcoming “Halving“, the year 2024 could well mark a new historical milestone in the meteoric ascent of the queen of cryptos.