Bitcoin, one of the most well-known cryptocurrency on the market, is now approaching RM270,000 (conversion rate based on 12 April 2021, when US$1 was equivalent to RM4.13), an all-time high that was recorded . This news comes as the ringgit continues to weaken against the US dollar and a short term spike in Bitcoin value. However, Bitcoin is currently trading around US$51,910 – still a way off from the dollar’s all-time high of US$65,000 in 2021.
“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,” said Scarlett Chai, Luno’s country manager for Malaysia.
Since being approved by the US Securities and Exchange Commission on 10 January, investor confidence has risen, supported by the performance of Bitcoin exchange traded funds (ETFs), which have attracted over US$34 billion from investors.
Last week, Bitcoin’s market capitalisation surpassed US$ 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.
“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,” Chai cautioned.
What is Bitcoin Halving?
According to Chai, 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. Every instance of halving thus far has had a major effect on the price of Bitcoin.
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. In 2020, Bitcoin saw another instance of halving, followed by a bull run that ended in an all-time high price of almost US$65,000.
Something to take note of is the changing dynamics on Luno. According to Chai, altcon Solana has replaced XRP in third place after Bitcoin and Ether over the past two months. This could potentially mark new cycles and patterns within the crypto ecosystem.
