On Thursday, the cryptocurrency market displayed overall positive momentum, with Bitcoin and various digital assets making gains as mainstream financial markets prepared for a holiday-shortened week. Bitcoin, the leading cryptocurrency by market capitalization, observed a 1% increase over the past 24 hours, reaching a trading price of $70,600. Despite recent fluctuations, Bitcoin managed to maintain its position above the psychologically significant threshold of $70,000, having reached a record high of nearly $74,000 just two weeks prior.
With the stock market set to be closed on Friday for the Easter holiday, traders may divert their focus to cryptocurrencies, which trade continuously 24/7. This shift in attention is particularly expected in response to significant macroeconomic events, such as the imminent release of the core personal-consumption expenditures (PCE) price index. As a closely monitored measure of inflation by the Federal Reserve, the PCE index influences digital asset markets due to their sensitivity to risk sentiment, borrowing costs, and correlation with traditional equities.
The recent upward trajectory of Bitcoin has been buoyed by the approval of spot Bitcoin exchange-traded funds (ETFs) by U.S. regulators in January. These ETFs have attracted considerable investor interest and inflows, contributing to Bitcoin’s approximately 60% price increase since the beginning of the year. Furthermore, the impending Bitcoin halving event, anticipated to occur on April 20, is viewed as a potential catalyst for further price appreciation. The halving mechanism will reduce the issuance of new Bitcoin, thereby tightening token supply and potentially driving up prices, provided that demand remains steady or increases.
Brian Dixon, CEO of Off The Chain Capital, noted that the substantial demand for Bitcoin ETFs, combined with the approaching halving event, could lead to additional price appreciation within the cryptocurrency market. Beyond Bitcoin, Ether, the second-largest cryptocurrency, also experienced gains, trading above the $3,575 mark. However, performance among smaller tokens varied, with some remaining stable or experiencing slight declines, while memecoins like Dogecoin and Shiba Inu saw significant increases in value.