Bitcoin's recent surge has brought it close to its all-time high, and some experts suggest that this is just the beginning. The cryptocurrency reached as high as $63,100 before a slight retreat, marking a year-to-date increase of over 30% and nearly 170% compared to the previous year.
The approval of mainstream financial institutions, like BlackRock and Fidelity, offering ETFs has attracted investors to Bitcoin. Steven Lubka, managing director at Swan Bitcoin, highlighted that these exchange-traded products make it easier for retail investors to enter the market and include Bitcoin in their retirement accounts. He believes that Bitcoin could potentially reach $300,000 in the next 18 months, driven by ETF inflows, which, according to him, are just in the early stages of their marketing efforts.
Despite acknowledging the absence of a crystal ball for accurate predictions, Lubka emphasized the positive impact of these ETFs, as evidenced by significant inflows. For instance, BlackRock's iShares Bitcoin Trust (IBIT) recently surpassed $10 billion in assets under management, with a record daily inflow of $612 million.
Another factor contributing to Bitcoin's rise is the upcoming "halving" in April, reducing the reward issued to miners. William Quigley, co-founder of stablecoin Tether and the WAX blockchain, mentioned that historical trends suggest Bitcoin's price usually peaks six months after halving and then experiences a significant retreat after 18 months. He predicts a bull market starting in October or November, lasting about a year and culminating in a peak price of $250,000.
Quigley advised potential investors to avoid herd mentality, emphasizing the importance of a long-term perspective. He cautioned that while Bitcoin's price may continue to rise, market sentiment can change, and investors should be prepared for potential fluctuations unless they are committed to holding their investment for at least five years.