Today, the world’s first cryptocurrency, Bitcoin closed the market on a bullish note. Bitcoin price has regained its $23,000 price level after facing a drop for the past few days.
Now, although the flagship cryptocurrency is just above its $23,000 range, it is still a long way behind before it reverts to its all-time high of $67,000 reached in November 2021.
However, the #1 cryptocurrency still appears to be ready if three of its important fundamental factors successfully influence its price. The three fundamental factors are inflation, halving and adoption.
Bitcoin, is the strongest in volatility
Most financial pundits, including Bloomberg Senior Commodity Expert Mike McGlone, believe that Bitcoin will develop as one of the assets to benefit the most in the volatile market situation. This volatility in the market is expected to appear mainly in the next half of the year 2022.
Furthermore, “The Bitcoin Standard” author and Austrian economist Saifedean Ammous are also of the opinion that Bitcoin has the power to fix the current downturn in the economy.
Regarding decentralized finance (DeFi) inflation, a chart created by software developer and Bitcoin supporter Jameson Lopp shows that Bitcoin’s annual inflation rate is steadily declining along with the number of tokens still in existence. available for mining.
Estimated data reveals that by December 2030, the inflation rate will fall to around 0.39%.
Post-halving effects
Until today, the Bitcoin network has carried out several halvings and it has been observed that after each halving event, the price of the coin has increased.
November 2012 was the first Bitcoin halving and during the same year, the price rose from $12 to $1,200. During the second half of July 2016, there was an increase from $647 to $19,800 in December.
Bitcoin surged 463% from $8,700 to $49,000 on May 11, 2021, one year after the most recent halving in May 2020.
Bitcoin is estimated to trade at $284,272 by the next halving, scheduled for 2024. This is based on the average price growth over the previous two halvings and the price around the 2020 halving.
Institutional Interest
Ultimately, it is institutional interest that acts as major support for the cryptocurrency space and the price of the #1 coin.
A recent example includes BlackRock (NYSE:BLK), a global wealth management firm, which has allegedly partnered with Coinbase to connect its customer base holding shares in the cryptocurrency exchange.
