After a week of price correction, Bitcoin’s value has rebounded and was hovering above $69,000 on Monday. The top cryptocurrency has surged more than 30% in a month due to bullish sentiment among investors after record inflows in spot Bitcoin ETFs and Bitcoin’s upcoming so-called “halving” event.
Traditional finance embraces crypto
The sudden jump in Bitcoin and the crypto market, in general, occurred due to the Securities and Exchange Commission’s approval of spot Bitcoin ETFs, followed by the U.K.’s permission to trade Bitcoin-linked securities in the stock market.
Goldman Sachs recently mentioned that its clients are suddenly interested in crypto again due to the SEC’s approval of Bitcoin ETFs. The support of big financial institutions such as BlackRock and Fidelity for Bitcoin ETFs, which are seeing record inflows, has propelled the crypto market to new heights.
Moreover, financial research analyst firm Bernstein has raised its price prediction for Bitcoin from $80,000 to $90,000, saying that after Bitcoin halving in mid-April, the price of the top cryptocurrency will go even higher.
Bitcoin halving is on the way
Bitcoin halving occurs every four years, cutting the reward for mining Bitcoin transactions in half. With the next halving just a week away, positive sentiment has spread across the crypto market.
The halvings decrease the rate of new coin creation, reducing the available supply, which helps to curb inflation. On May 11, 2020, Bitcoin underwent its most recent halving, which reduced the block reward to 6.25 Bitcoin. This year, after halving the block reward will be reduced to 3.125 Bitcoin.
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