Today the world’s first cryptocurrency, Bitcoin opened the market on a bullish note. Bitcoin price has reclaimed its $23,000 price levels after facing a downfall for the last couple of days.
Now, though the flagship currency is hovering just above its $23,000 range, the currency is still much behind before it revisits its all-time high of $67,000 hit during November 2021.
However, the King currency still appears good to go if three of its important fundamental factors successfully influence the currency. The three fundamental factors are inflation, halving and adoption.
Bitcoin, The Strongest In Volatility
Most of the financial experts , including Bloomberg’s senior commodity expert Mike McGlone, believes that Bitcoin will unfold as one of the most beneficiary assets in the volatile market situation. This volatility in the market is mostly expected to appear in the next half of the year 2022.
Additionally, “The Bitcoin Standard” author and an economist from Austrian, Saifedean Ammous is also of the opinion that Bitcoin has the power to fix the current downfall of the economy.
Regarding the inflation of the decentralized finance (DeFi), a graph created by Bitcoin supporter and software developer Jameson Lopp shows that the yearly inflation rate of Bitcoin is steadily declining along with the number of tokens still available for mining.
The estimated data reveal that by December 2030, the inflation rate will fall around 0.39%
Post Halving Effects
Till today, Bitcoin has undergone several halvings and its observed that after every halving event the currency’s price has surged.
November 2012 was Bitcoin’s first halving and during the same year, the price surged from $12 to $1,200. During the second halvind in July 2016 there was an upswing from $647 to $19,800 by December.
Bitcoin increased by 463% from $8,700 to $49,000 on May 11, 2021, one year following the most recent halving incident in May 2020.
Bitcoin is estimated to trade at $284,272 by the next halving episode anticipated for 2024. This is based on the average price growth over the previous two halving occasions and the price around the 2020 halving.
Lastly, its the institutional interest that is acting as a major support for the cryptocurrency space and the price of king currency.
Th recent example include BlackRock (NYSE: BLK), a worldwide wealth management company, reportedly teamed with Coinbase to connect its customer base who have holdings on the cryptocurrency exchange.