Bitcoin Soars Again Despite Economic Dread: Will BTC Fly Past $50k by Year’s End?

Bitcoin (BTC) demonstrated its resilience by briefly surpassing $31,000 on Monday, reaching a price not seen since June. Bitcoin, the largest cryptocurrency by market capitalization, has remained relatively stable around the $30,000 mark in recent days. It had briefly dropped below $30,000 last week amid concerns about rising inflation. Investors appear to have regained confidence quickly, however, as Bitcoin’s meteoric rise over the past month has been driven by several positive events, including announcements of spot Bitcoin Exchange Traded Funds (ETFs) filing from financial giants such as BlackRock and former U.S. Securities and Exchange Commission (SEC) Chair Jay Clayton signaling a potentially favorable view towards the asset.

Investor concerns arise as the Federal Reserve prepares for a 25-point interest rate hike

The surge in Bitcoin’s price has positively impacted the cryptocurrency market. Ether (ETH) currently trades at $2,084, and altcoins like Aber (AVAX) and DydX (DYDX) have also experienced substantial growth in the past 24 hours. Coinbase (COIN) and Marathon Digital Holdings (MARA) stocks dropped over 3% in the last 24 hours.

Despite Bitcoin’s resurgence, the Federal Reserve’s looming 25-point interest rate hike has some investors worried. The upcoming U.S. Consumer Price Index (CPI) report on Wednesday is expected to show a consistent decrease in inflation that could embolden central bankers to lower rates, but Edward Moya of foreign exchange market maker Oanda warns that even if the report is encouraging, the Fed is still likely to raise the rate. Concerns about rate increases have raised worries about the economy, with analysts predicting Bitcoin could drop further.

Bitcoin and cryptocurrency seen as safe and reliable assets in times of economic uncertainty

3iQ‘s Mark Connors ties the high BTC activity to the potential approval of the Congressional Digital Assets Act. This act determines decentralization. However, it is still uncertain when (or if) the Act will be passed into law. Standard Chartered Bank predicts Bitcoin to reach $50,000 by year-end and potentially reach $120,000 by 2024. Joe DiPasquale, CEO of crypto-asset manager BitBull Capital, has a conservative yet optimistic view. Stability around $29,000 could lead to a bounce-back in Bitcoin’s price, according to the analyst’s suggestion.

Bitcoin and cryptocurrency have proven to be safe and reliable assets in times of economic uncertainty. The rally hints at a new market threshold, leaving the possibility of Bitcoin surpassing $50,000 in the future.

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Chris Griffin
Chris has had a career as an advisor to the tech industry, incubating start-ups in the tech industry. Welcoming Chris to contribute his expertise covering the latest things he sees in blockchain