YEREVAN (CoinChapter.com) — Cryptocurrency markets have once again captured the world’s attention, experiencing an unprecedented rally in 2024. Bitcoin (BTC), a leading digital currency with a market capitalization of $1 trillion, is leading the cryptocurrency boom. The price surged to an impressive $52,000, reigniting enthusiasm surrounding the cryptocurrency sector.
Cryptocurrency market capitalization $1.95 trillion
Bitcoin is not the only digital asset to surge. Ethereum (ETH), the second largest cryptocurrency, also showed remarkable resilience, surpassing $2,800.
These positive price movements pushed the overall cryptocurrency market cap to a whopping $1.95 trillion. This is a monumental milestone as the market last reached these levels in 2022.
Spot Bitcoin ETFs may be behind the recent surge, according to Antonio Ernesto Di Giacomo, Latam market analyst at xs.com.
The U.S. Securities and Exchange Commission’s (SEC) approval of a Bitcoin exchange-traded fund (ETF) in January 2024 contributed to increasing market sentiment.
“The effects of this regulatory decision are already being reflected in observed price movements. “Although Bitcoin was the leader in this rally, other major cryptocurrencies including Ethereum, Binance, Solana, and Ripple also experienced significant price increases.”
the analyst said.
Ahead of Bitcoin halving
Following the approval of the Bitcoin ETF, speculation has been growing about the possibility of an Ethereum ETF being approved. According to market observers, this move could provide additional impetus to the market and potentially fuel the upward trend witnessed in the cryptocurrency boom in 2024.
Meanwhile, amidst the optimism, another important event that Di Giacomo points out is just around the corner. The Bitcoin halving event is scheduled for April 2024, less than 62 days away.
According to him, the months leading up to the halving have historically seen a downward trend in the price of Bitcoin. This is usually caused by miners liquidating their reserves to cover operating costs. Despite the expected cryptocurrency boom in 2024, this potential oversupply could put downward pressure on the BTC price in the near term.
On the other hand, the months following the Bitcoin halving were strong. Since the previous halving in 2020, BTC price has surged, hitting a new all-time high (ATH) above $68,000.
According to a recent analysis by IntoTheBlock, there is an 85% chance of a cryptocurrency boom occurring in 2024. With further interest rate cuts from the US Federal Reserve (Fed) in the pipeline, BTC could see a new ATH in the next six months.