"Hmm, maybe it's possible, maybe not, what do you all think?"
Cryptocurrency king Bitcoin (BTC) saw a massive climb up to $52,000 in the past few weeks, so it is worth noting that there are several factors that could push its price higher.
Among the factors is the increasing outflow of BTC exchanges, where investors have switched to self-custody methods instead of relying on centralized platforms and this is considered an upward movement following reduced selling pressure.
Additionally, another factor that may play a role in further BTC price increases is the BTC halving event in April this year which will reduce miners' block rewards from 6.25 BTC to 3.125 BTC.
Through observation, the halving has acted as a catalyst for future BTC price increases as it reduces the number of new BTC created, for example the BTC price reached an all-time high of $70,000 in November 2021.
Like to be informed BTC price hike can also be triggered due to the anti-inflationary policy shown by the Federal Reserve (Fed) following the central bank raising interest rates 11 times between March 2022 and July 2023 to combat soaring inflation due to the COVID-19 pandemic.
Even so, the Fed kept the benchmark untouched during its latest Federal Open Market Committee (FOMC) meeting which hinted at rate cuts through 2024.
High rates make borrowing money more expensive and can deter public interest in risky investments like crypto, while lowering the benchmark can allow more individuals and entities to deal with risky assets by getting outside financing.
As of this writing, BTC price trading at $51,435 has recorded a 1.23% rebound in the past 24 hours with a market cap of $1 billion but is still up 2.72% over the past week.
