At the time of this writing, Bitcoin is sitting just north of $30,200 per coin. Not only is that a healthy jump from the $28,000 level it was at just three days ago, but the cryptocurrency’s rise to above $30,000 means the coin is at its highest price since early June 2022. Such a level is a far way from its November 2022 price point of $15,700—roughly half of what it’s worth today.
But just what has driven Bitcoin’s rise recently? That’s the thing: No one seems to be able to agree on why investors appear to be more comfortable buying into Bitcoin again. But different analysts do have their ideas.
Edward Moya, a senior market analyst for Oanda, told CoinDesk that the most recent surge may have, in part, something to do with crypto traders buying into the coin to voice their frustrations with what many crypto enthusiasts viewed as a one-sided New York Times article, which underscored the detrimental energy consumption effects of mining cryptocurrencies.
Forbes, on the other hand, points to numerous factors, highlighting that the recent banking instability has only strengthened those who believe that there is more need than ever for people to have a decentralized finance option to turn to—cryptocurrencies, in other words.
But Forbes also points out another interesting possibility: Bitcoin could be on the upswing due to the fact that in May 2024, the next Bitcoin halving milestone occurs. This is an event that happens about every four years that reduces the rewards for mining new Bitcoins by 50%. As CNBC notes, Bitcoin prices entered a bull run ahead of previous halving events.
And then there’s Wells Fargo equity analyst Jeff Cantwell’s opinion that Bitcoin seems to be up for three main reasons. He told CNBC those reasons center around “crypto [being seen] as a ‘flight to safety’ given banking turbulence; positioning (short covering); and a shift ‘at the margin’ by investors to ‘risk on’ as prospects of a Fed pivot have increased.”
So, who’s right? It’s impossible to say. The most likely scenario, many analysts seem to agree, is that Bitcoin passing the $30,000 mark is due to a number of differing factors.
The bigger question, however, is where does Bitcoin go next? As many investors know all too well, that’s a question no one can answer.
