Bitcoin Hits $30k For The First Time Since June. Could A Bitcoin Bull Run Be On The Way?
Key takeaways
- Bitcoin hit $30,000 on Tuesday and is up over 80% since the start of the year
- Ethereum has also gained thanks to its final piece of the Merge upgrade taking place
- Both cryptos could see volatility depending on how the market reacts to the CPI inflation results for March
Bitcoin briefly flirted with a $30,000 price tag this week, hinting the crypto winter is thawing and the worst of the banking crisis is over — but it could see further volatility depending on how the market reacts to the latest CPI data.
That being said, things are looking up thanks to some technical upgrades on Ethereum’s part and a potential bull run in the lead up to Bitcoin’s 2024 ‘halving’. Here’s the lowdown.
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What’s the latest with Bitcoin?
Bitcoin was steadily over the $30,000 threshold on Tuesday before dipping back down slightly to the $29,000 region. Bitcoin prices have surged 82% this year after the entire crypto market plunged in value as soon as economic uncertainty began to hit.
The boost is reported to be from the expected cooling of CPI, with new figures today showing a fall back to 5%. It opens the door for a potential pause to the Fed’s interest rate hikes at the next meeting in May, which boosts crypto.
We’re also only a year away from a Bitcoin phenomenon, the ‘halving’, where rewards for mining new Bitcoin are slashed by 50%. Historically, this has caused a bull run before it happens — so we could be at the start of a steady increase for the cryptocurrency’s price tag.
How’s the broader crypto market faring?
Ethereum also jumped up at the same time, briefly touching $1,900 before dropping back down. The cryptocurrency’s widely anticipated ‘Shapella’ upgrade is happening today, which means stakers will finally be able to retrieve their deposits for the first time since 2020. Traders are expecting some short-term market volatility off the back of it.
The S&P Cryptocurrency Broad Digital Market Index is currently tracking 4.57% higher this month. It’s been up overall by over two-thirds since the start of 2023 — a good sign for entrenched crypto investors that have weathered the storm.
The bottom line
Everyone knows crypto is an unregulated rollercoaster that has either cost people their life savings or made millionaires overnight. Crypto does seem to be gaining momentum again, but the last 18 months have shown it’s more sensitive to volatile market conditions.
Personally, we’d recommend a more diversified basket if you’re looking for crypto gains. Q.ai’s Emerging Tech Kit identifies the tech stocks, ETFs and crypto that could perform the best each week. The secret ingredient? A tailor-made AI algorithm that dives into the data deep end.
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