Cryptocurrency market cap leader Bitcoin is approaching RM270,000* all-time high recorded during the 2021 bull market, and is currently trading on Luno at RM247,950. The milestone followed a week-long rally which saw Bitcoin up by around 20% over the week.
In US dollar terms, however, Bitcoin is currently trading around USD51,910 – still a way off from the dollar’s all-time high of USD65,000 in 2021.
Scarlett Chai, Luno’s country manager for Malaysia, says, “As widely expected, 2024 is shaping to be a good year for the crypto industry with the Bitcoin halving taking place mid-April 2024. The excitement and anticipation of the Bitcoin halving are believed to be a catalyst for the market’s growth”.
Renewed investor confidence was buoyed by the performance of Bitcoin exchange traded funds (ETFs), which have attracted over $34 billion from investors since being approved by the US Securities and Exchange Commission on January 10.
Last week, Bitcoin’s market capitalisation surpassed USD 1 trillion, amid recent traditional market unrest fueled by higher-than-expected CPI inflation data in the US. Several analysts anticipate continued growth on the back of ongoing bullish sentiment.
Chai cautioned that “While a potential bull run would present an opportunity for the public to increase gains, the public would still have to be watchful and be discerning with schemes that promise high returns over a short period.”
What is Bitcoin Halving?
“Bitcoin Halving is a four-year cyclic event that decreases miners’ rewards in half to ensure that an infinite supply of Bitcoin doesn’t erode its value further down the line. Each previous halving has historically had a major impact on the price” said Chai.
The first halving saw price increases of more than 8,000% from pre-halving levels. Bitcoin’s value also increased roughly 3,000% over the second halving cycle in 2016. The last halving in 2020 was followed by a bull run that ended in an all-time high price of almost $65,000.
Chai also notes the changing dynamics on Luno, with altcoin Solana replacing XRP in third position after Bitcoin and Ether over the past two months. “While XRP continues to be one of the top coins traded on Luno, this could point to new cycles and patterns in the crypto market,” she concluded.
*Conversation rate based on 12 April 2021, when USD1 was equivalent to RM4.13.
