What's Driving Bitcoin Above $60K?

Bitcoin is back above $60,000 for the first time since November 2021. This price increase follows Bitcoin's $50k peak two weeks ago. At press time, its market cap is $1.15+ trillion. Not bad for a "untested technology" many skeptics had written off following the bear market.

Institutional investor demand has propelled Bitcoin's surge. MicroStrategy added 3,000 Bitcoins to its 193,000 BTC holdings. Bitcoin costs $51,813 on average.

Since January, institutional investors have invested nearly $17 billion in US spot Bitcoin ETFs. Some expect this desire to grow. Joel Kruger of LMAX Group says Bitcoin ETFs show "mainstream adoption is underway." Kruger expects Bitcoin prices to break records due to limited supplies and increased institutional demand.

Growing institutional interest and constrained Bitcoin supplies support Bitcoin's appreciation. The April "halving" incident is also generating excitement in Bitcoin.

Previous halvings preceded extended Bitcoin bull runs. Speculators try to foresee the decline in fresh BTC supply, so prices rally a year out. According to prominent crypto trader and analyst Rekt Capital, BTC is approaching the "pre-halving rally" phase of its market cycle.

As the halving event approaches, many expect this trend to accelerate. The psychology of future scarcity has already boosted positive optimism. It's crucial to be calm. Crypto can rise and fall, as we've witnessed.

Today, the CMC Crypto Fear and Greed Index is 80. The strong greed suggests that investors may be overconfident and irrational during high market momentum. An "extreme greed" atmosphere is usually over 70. Once momentum stops, crypto markets may experience dramatic corrections due to enthusiasm exceeding reason.

Analysts are watching to see if Bitcoin can break its all-time high above $69K in the coming weeks near $60K. While technical and on-chain evidence suggest Bitcoin will continue its vertical ascent, investors should note that crypto markets can experience extremely volatility swings in both directions.

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