The crypto market, particularly Bitcoin (BTC), has recently witnessed a surge in excitement as BTC continues its winning streak, extending to six consecutive sessions. This surge is accompanied by a phenomenon known as FOMO, or Fear of Missing Out, which is prevalent among investors and traders.
FOMO occurs when individuals experience anxiety or apprehension about missing out on potential gains in the market and feel compelled to participate or invest hastily. As BTC’s price climbs, FOMO intensifies, leading to increased buying pressure and further driving up prices.
Bitcoin surge continues
At the time of writing, the value of Bitcoin (BTC) is $48,388.18, reflecting a 0.5 percent surge from one hour ago and a 2.5 percent surge since yesterday. As of today, Bitcoin has gained 12.7% in value in comparison to its value seven days ago. The 24-hour trading volume of Bitcoin amounted to $19,614,152,544.
The current value of the global crypto market cap is $1.91 trillion, representing a change of 2.74% over the last twenty-four hours and 78.57% over the past year. BTC currently holds a market cap of $949 billion, signifying a dominance of 49.77%. Stablecoins, meanwhile, have a market cap of $139 billion, or 7.27 percent of the total crypto market cap.
Over the weekend, BTC-spot ETF market news continued to pique investor interest. The volume and flow numbers for the Friday session boosted buyer interest in BTC. On Saturday, BitMEX Research released flow numbers for Grayscale Bitcoin Trust (GBTC) and the Nine (the Nine are the first SEC approvals in January 2024).
Significantly, iShares Bitcoin Trust (IBIT) saw overall flows rise by $250.7 million, bringing total net inflows to $3,750.5. IBIT net inflows were the seventh highest since inception. Fidelity Wise Origin Bitcoin Fund (FBTC) received net inflows of $188.4 million, bringing the total net inflows to $3,003.2 million.
However, Invesco Galaxy Bitcoin ETF (BTCO) was the first of the Nine to experience net outflows during a session. Nonetheless, total net inflows reached $541.5 million, the largest since $655.2 million on the first day of trade.
After 22 days of trading for the Nine, the buzz around the BTC-spot ETF market remained.
BTC predicted to hit $100K in 2024
Following an outstanding 2023 in which it increased by more than 150%, BTC is expected to perform even better in 2024. But will it be able to maintain its speed and reach the widely anticipated $100,000 mark?
Let’s get to the point: the answer is yes. The reasons for this are based on several evolutionary events, the most prominent of which is a simple dynamic known as supply and demand. With a little arithmetic, it’s clear that a six-figure Bitcoin is not just possible but practically certain.
The second halving is scheduled for April when Bitcoin’s inflation rate will drop from around 1.75% to 0.85%. As a result, just 656,250 bitcoins will join the market between this halving and the next, representing exactly half of the 1,312,500 that entered the market following the previous halving.
The effects of halving are rather basic. Bitcoin’s price may skyrocket as supply declines, even if demand remains steady.
BTC’s price increased by approximately 125% on average throughout the years following the halving. If a similar circumstance occurs this time, Bitcoin’s price will rise by 125% from the beginning of the year, bringing it just shy of the six-figure threshold at $99,000.
Throughout Bitcoin’s existence, the total supply on exchanges increased, even when halvings occurred. However, that changed in 2020 when an apparent downturn emerged. There are several reasons for this, but the most basic one is that demand has now begun to outrun supply.
With a halving looming, the digital coin’s unusually limited supply will come under even more strain. While the halving has the potential to push it close to $100,000, the combined impact of a supply constraint will most likely provide the additional fuel it requires to hit six figures.
