The world’s leading cryptocurrency broke the $70,000 mark for the first time about 10 hours ago. So Bitcoin bulls are experiencing a bumpy ride this week, but a sharp sell-off soon follows. This volatile trend raises questions about Bitcoin’s long-term stability and the sustainability of its current rise.
Bitcoin bulls experienced deja vu
Bitcoin surpassed its previous all-time high of $69,200, briefly reaching a staggering $70,136 according to the Bitcoin Index (XBX). However, as selling pressure increased, enthusiasm quickly turned into panic and the price fell 5% to $66,500 within an hour.
This pattern mirrors events from earlier this week, when Bitcoin fell just 14% to set a new record and settled around $59,000. The market appears to be struggling to maintain momentum at these unprecedented levels. This raises concerns about overvaluation and possible corrections.
What’s behind the rally?
Despite recent volatility, Bitcoin’s overall trajectory in 2024 is undeniably bullish. There are several key factors contributing to this growth:
- Spot Bitcoin ETF Excitement: The launch of spot Bitcoin ETFs in the US has led to a significant increase in institutional investment. The total trading volume of these products exceeded $100 billion in less than two months, creating a strong supply and demand imbalance in favor of Bitcoin.
- Savings of Important Players: Leading financial institutions such as BlackRock, Fidelity Investments, and Grayscale are actively accumulating Bitcoin through spot ETFs, further tightening the supply and driving up the price. BlackRock’s record entry of $788 million is an example of this trend.
- Bitcoin Halving Excitement: The upcoming Bitcoin halving event, expected in 2024, is reviving investors’ confidence. Supporters believe that the halving, which reduces the number of new Bitcoins entering circulation, will inevitably push the price upwards. cryptokoin.com As we reported, industry figures such as Robert Kiyosaki are predicting an increase of up to $300,000 by the end of the year based on this expectation.
Coinbase struggles amid BTC boom
While the broader cryptocurrency market celebrates, leading American exchange Coinbase is facing a different reality. The platform experienced a series of outages coinciding with Bitcoin’s price increases, leaving users frustrated and questioning the exchange’s ability to handle high trading volumes.
Critics like MartyParty blame Coinbase’s technical infrastructure for these repeated glitches, pointing to a lack of scalability and outdated technology. Repeated outages raise concerns about the security and reliability of the platform, especially during critical market movements. Some think these outages may be deliberate attempts to manipulate the Bitcoin price and prevent further ATH.
Bitcoin has undoubtedly entered uncharted territory, surpassing its previous highs and experiencing significant market fluctuations. Time will tell whether this is a sign of a sustained bull run or a temporary bubble. The coming months will be crucial in determining Bitcoin’s ability to maintain its current momentum and overcome challenges posed by market volatility and exchange infrastructure limitations.
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