Bitcoin value triples in a year, hitting over 2 million baht

PHOTO: Bitcoin via Unsplash

Bitcoin’s value soared to over 2 million baht on the Bitkub digital asset exchange, as global prices reached an all-time high of US$59,000 yesterday afternoon. This surge is due to the institutional acquisition of spot Bitcoin exchange-traded funds (ETFs) and a growing interest in cryptocurrency among retail investors.

Udomsak Rakwongwan, co-founder of decentralised derivatives platform FWX, and Mathematics lecturer at Kasetsart University, highlighted the impressive increase in Bitcoin’s value, which has nearly tripled in a year, ahead of the anticipated halving in April, reported Bangkok Post.

According to Udomsak, the industry is currently in a pre-halving recovery stage. He noted that the trend has remained consistent throughout Bitcoin’s existence.

“Conversations with industry leaders at many global crypto events I attended reveal a consensus on market recovery timelines and behaviours. This has resulted in strategic Bitcoin accumulation and increased marketing expenditures by crypto giants, both of which amplify demand.”

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Udomsak pointed to the likelihood of an increased money supply and potential economic stimulus in the US, particularly ahead of the next presidential election in November, as factors that could boost Bitcoin’s value further.

BlackRock and Fidelity, among the world’s largest mutual fund companies, have accumulated over US$12 billion in Bitcoin ETFs. Udomsak identified this steady inflow as a sign of strong confidence from traditional and institutional investors in Bitcoin’s future.

Retail investor interest

JPMorgan Chase, a global investment bank, attributed the recent surge in popular cryptocurrencies such as Bitcoin and Ethereum to a revival of retail investor interest.

“The revival of the retail impulse in February perhaps reflects the anticipation of three main crypto catalysts over the coming months: the Bitcoin halving event, the next major upgrade of the Ethereum network, and the prospect of approval of spot Ethereum ETFs by the US Securities and Exchange Commission in May.”

These strategists highlighted recent reports from Paypal, Block Inc., and Robinhood Markets Inc., which showed a net increase in Bitcoin purchases by their customers in the fourth quarter of 2023. This rise in retail activity coincided with Coinbase, a major US crypto exchange, reporting its highest quarterly Bitcoin trading volume in two years.

Bitkub Capital Group Holdings noted that the cryptocurrency market capitalisation has skyrocketed to over US$1.8 trillion. Investors were warned to exercise caution with Bitcoin investments due to the rapid price increase.

Udomsak observed that the ideal buying opportunity before the halving has already passed, but the pattern suggests potential growth in the post-halving year. He warned, however, that the impact of each halving lessens as the number of investors increases.

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Alex Morgan

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