Bitcoin broke the $60,000 barrier for the first time since November 2021 on Wednesday, reaching a peak of $63,700 before pairing some gains throughout the day.
It is a historic rebound, bringing the price of the digital asset within striking distance of its all-time high: $69,045.
The surge is unfolding as we get closer to the halving, when the rewards received by miners will be halved—a pivotal event inherent to Bitcoin's operation scheduled for April. Historically, this event has aligned with a rally in Bitcoin's price, as it often prompts increased demand and scarcity.
Andrés Salcedo, Global Crypto Leader at Bitso, a leading Mexican exchange in Latin America, explained to The Latin Times that "the value of bitcoin is growing, and today it's operating at prices not seen since early 2022, so there is great optimism in the ecosystem."
"We are very excited about this new 'Bitcoin moment' following the last halving in 2020. Although there is no exact date for the 2024 halving, it is estimated to occur during the first half of the year, and this means that the value derived from user interest in the currency could increase in the subsequent months," he explained.
Salcedo added that, in this context, the ecosystem has expectations of a "crypto summer" (that is, a rosy period of gains) for this year, and that Bitso believes that "the widespread adoption of bitcoin as the cryptocurrency with the highest market capitalization could continue to drive long-term price increases."
"Although the behavior of Bitcoin is unpredictable and changes, we have seen a renewed interest in Bitcoin trading among Bitso users in recent months," Salcedo said. Bitcoin "has demonstrated its capacity as a store of value and technology, time and time again over the past few years."
A Surge Expected In January
A surge that would send Bitcoin over the $60,000 barrier also coincided with huge inflows into U.S. Spot Bitcoin Exchange-Traded Funds (ETFs), which were approved in January by the Securities and Exchange Commission (SEC), which made it easier to invest in this digital asset.
Many expected to see that effect in the short term, but the immediate reaction was a drop in Bitcoin prices. Expert Monica Talan explained in an interview with The Latin Times that "If you follow the ecosystem, you also know that many people were waiting for approval to sell for a little return, what they call 'shorts.'"
Following the profit taking and a few weeks, the digital asset surged again. Salcedo pointed out that the introduction of Bitcoin Spot ETFs "sparks excitement in the market and validates its value as a solid asset comparable to silver and gold; and the price cycle of bitcoin itself, which presents consistent patterns of sustained growth and leveling once that cycle is completed."
How Latinos Received Bitcoin's Rally
Many Latinos celebrated Bitcoin's surge this week, particularly those who hold cryptocurrency and were impacted by the downturn in all such assets since November 2021, which marked the onset of the period known as "crypto winter" that saw the price of Bitcoin drop below $20,000.
Just as he does every time Bitcoin takes a positive leap, the president of El Salvador, Nayib Bukele, celebrated via Twitter. "If we were to sell, we would make a profit of over 40% (just from the market purchases), and our main source of BTC is now our citizenship program," he wrote.
And continued: "We won't sell, or course; at the end 1 BTC = 1 BTC (this was true when the market price was low and it's true now); but it's very telling that the authors of those hit pieces, the "analysts", the "experts", the "journalists", are totally silent now."
When #Bitcoin’s market price was low, they wrote literally thousands of articles about our supposed losses.
— Nayib Bukele (@nayibbukele) February 28, 2024
Now that #Bitcoin’s market price is way up, if we were to sell, we would make a profit of over 40% (just from the market purchases), and our main source of BTC is now our…
© 2024 Latin Times. All rights reserved. Do not reproduce without permission.
