Cryptocurrency Boom: Bitcoin surpasses $71,000, what’s next?

Bitcoin Price Surges to Over $71,000

The price of Bitcoin is rapidly increasing, surpassing $71,000 and gaining over 2% in the last 24 hours. This event delights investors and sparks interest in the cryptocurrency market.

Institutional Interest and Bullish Market Sentiment Growth

Institutional entities are paying increasing attention to Bitcoin, further sustaining a positive sentiment in the market. This signifies the expansion of investors and growing trust in cryptocurrencies, even among more conservative ones.

Influx of Funds into Cryptocurrency-Related Investment Products

A weekly report from CoinShares shows a record inflow of approximately $862 million into cryptocurrency-related investment products last week. This is a clear signal of increasing investor interest in such assets.

Predictions Regarding Bitcoin’s Fourth Halving

There are about 1,738 blocks left to be mined until Bitcoin’s fourth halving. Experts forecast that with the upcoming halving, Bitcoin’s mining cost could double from $40,000 to $80,000, potentially having a significant impact on the cryptocurrency market.

Planned Expansion of Bitcoin Mining Power

A Bhutanese investment company plans to increase its Bitcoin mining power sixfold, reaching an impressive 600 megawatts next year. This is a step towards the developing cryptocurrency mining sector in the region.

Inflation and Price Pattern Forecasts

According to analyses, Bitcoin’s halving will reduce the annual inflation from 1.68% to around 0.84%. The current Bitcoin price is forming a bullish flag pattern on the daily chart, indicating a possible continuation of the upward trend. Technical forecasts suggest the possibility of reaching a price level of $85,000 if the price remains above $71,000.

Altcoin Markets and Future Predictions

Bitcoin’s dominance in the market is close to changing after reaching psychological resistance at around 54%. Predictions point to a continuation of capital rotation from the cryptocurrency environment towards altcoins in the coming weeks. The development of web3 products and real-world assets (RWA) tokenization is increasing the appeal of altcoins compared to the risks, which may attract new investors to this market segment.