Bitcoin has posted a fourth consecutive month of gains, leading some to believe an extended bull run is imminent. The world’s largest cryptocurrency has ended each month higher than it started each month since January, representing the longest streak of positive months since 2021.
A four-month period of past gains was followed by an average 260% increase, which could take Bitcoin above $100,000 compared to its all-time high of over $69,000 in November 2021. However, such a jump is not guaranteed .
The cryptocurrency has had a rough year in 2022, hitting a low of around $15,700 in November, while a bear market has hammered digital assets across the board.
Since then, Bitcoin has risen steadily, although it stagnated between $27,000 and $30,000 for several weeks. Some have pointed to Bitcoin’s halving, which will halve the rewards for mining a new block on the blockchain, as a sign that Bitcoin’s price will skyrocket in the coming year.
Bitcoin breaks transaction record
Recently, Bitcoin got a boost from Ordinals, which are NFTs, but on the Bitcoin blockchain. Some of the community embraced Ordinals as an opportunity to extend blockchain beyond pure financial use.
On Sunday, the bitcoin blockchain saw the highest number of transactions in its history, thanks in part to Ordinals. The blockchain saw more than 568,000 transactions on Sunday, about 300,000 of which involved Ordinals, as first reported by the live coins.
Despite these positive developments, Bitcoin faces obstacles as it tries to match its all-time high in 2021.
New price record possible
Markets suffered on Monday after regulators seized the troubled First Republic Bank, which was sold to JPMorgan Chase. In addition, the Fed is expected to hike rates this week in an effort to fight inflation, despite warnings of an impending recession and lower-than-expected GDP growth for the first quarter.
Bitcoin has seen several changes in its narrative, adapting to different economic situations and receiving help from factors such as looser monetary policy from the Federal Reserve and the US banking crisis.
The planned reduction in the supply of new coins has also led to Bitcoin’s appreciation. Experts point to possible avenues for the cryptocurrency to reach values above $100,000, highlighting its main use case as a decentralized digital asset, uncontrolled by third parties and sparse.
However, the cryptocurrency market still faces risks, including a crackdown on the sector in the US. In addition, the outlook for real and virtual assets is difficult to analyze in a period of economic uncertainty.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
