At the start of 2024, the price of bitcoin has started to rise again after a turbulent 2023. The flagship crypto aims to surpass its previous all-time highs, amid growing adoption among the general public and institutions. Let’s take a closer look at the technical and fundamental factors contributing to this bullish momentum.
Bitcoin, mainstream adoption which is accelerating
One of the key elements driving the price of bitcoin is the acceleration of its adoption beyond the crypto sphere. In the United States, the launch of the first Bitcoin ETFs acted as a catalyst. Inflows into these exchange-traded funds continue to increase, draining billions of dollars.
Among the star ETFs, BlackRock’s IBIT fund has already attracted Canadian asset manager Redwood. The latter sold his shares in the Purpose Bitcoin fund in Canada to invest in IBIT, considered more competitive in terms of fees.
This type of migration of institutional investors confirms the growing interest in gaining exposure to Bitcoin via these traditional financial products. ETFs also provide greater liquidity to crypto exchanges.
In addition to ETFs, other services make it easier for retail investors to buy bitcoin. Like for example the recent integration of MetaMask into the Robinhood platform. Crypto thus continues its integration into the mainstream financial industry.
A key technical resistance to overcome
On a technical level, the price of bitcoin is currently moving around $45,000, after reaching almost $70,000 in November 2021. The major resistance is around $53,000, its previous all-time high. Currently, it is around $43,600.
Crossing this technical threshold sustainably would open the way to new heights. According to some reputable analysts like Peter Brandt, the recent erratic bitcoin market resembles the one preceding previous ones parabolic flights.
Driven by positive fundamentals such as institutional enthusiasm, and despite technical obstacles still present, Bitcoin seems to have regained its upward strength at the start of 2024. If this pace of adoption continues, the flagship crypto could reach new levels. records in the coming months and continue its quest for legitimacy.
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