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Why is Bitcoin’s Price Going Up?

3 reasons why Bitcoin price is rising

Bitcoin price

Bitcoin price
Bitcoin price, courtesy of Unsplash

Why is Bitcoin’s price going up? — let’s dive in.

As I write this on the afternoon of Febuary 8, 2024, Bitcoin’s price ($BTC) is right about $45,000. It’s up about 100% over the past 12 months, and it’s up about 10% over the past two weeks.

As the Founder of The Latest Block, I thought it was it time to share some market insights. Let’s dive into the three reasons why I feel Bitcoin is currently rising.

Link BTCUSD, one-day candlestick chart over 1 year

Bitcoin Halving

The first and most important bullish wind I see is the halving.

The Bitcoin halving or halvening is currently estimated to occur on April 17, 2024.

If you don’t know what this is, let’s keep it simple. In this event, it will become harder to mine Bitcoin. In other words, Bitcoin’s supply will become more scarce, in a fashion.

The current Bitcoin miner reward is at 6.25 BTC and will be slashed in half to 3.125 BTC.

Supply and demand dynamics come into play here and each halving in the past has coincided with a multi-year bull market — 2012, 2016 and 2020.

China Economic Fears and Response

$CNYA: Blackrock’s iShares MSCI China A ETF, 5 years, weekly candlesticks. Link

First, the Chinese economy is struggling. It’s government and central bank are dealing with deflation concerns.

Next, partly in connection with the above, their stock market has been down trending as of late. The above ETF ($CNYA), one of the most popular China ETF’s in the world, is down around 50% from its peak in January 2021, and is down over 30% since January 2023.

And as a third piece of this situation, many investors from the US, Europe and elsewhere have been recently showing favor towards India over China as a leading emerging market investment target.

Now, none of this sounds good, but in this case bad news is good news. These are all reasons for the money printer to go brrrr. Chinese President Xi and the Chinese Communist Party have already taken moves to prop up the economy by infusing it with cash. Since this hasn’t worked yet, the odds are pretty good that the world’s 2nd largest economy and largest socialist government will continue to throw money at the problem.

In China and nearby Asia, that cash is more than likely to find itself in the crypto markets, and investors around the world are likely to follow.

Fed Rate Cuts & Bitcoin

Photo by Etienne Martin on Unsplash

As in all markets, investors attempt to predict the future. America’s central bank hasn’t actually cut rates, but with lowered inflation, it is expected to do so multiple times this year. At least, rates aren’t going up anymore.

This is bullish for assets like stocks and crypto, that are viewed as riskier.

Bullish on BTC

I was recently on the evening news in Dubai on Asharq Business with Bloomberg (Arabic) where I shared my views on these points.

TLDR: I am bullish on Bitcoin now and throughout 2024 because:

  1. Investors are anticipating the April 2024 Bitcoin Halving.
  2. China QE to support markets/combat deflation will increase flows into the crypto market.
  3. Investors are anticipating of 2024 Fed Rate Cuts.

For more insights, don’t forget to subscribe.

This content is for news and educational purposes only. It does not constitute trading advice. Past performance does not indicate future results. Do not invest more than you can afford to lose. The author of this article may hold assets mentioned in the piece.


Alexandre Lores is a personal finance writer from Tampa Bay, Florida, with the goal to help one million people achieve financial freedom. He has spent over five years studying markets and economics, finding Bitcoin in 2017 and never turning back. He frequently appears on TV and in online news articles and is a regular Twitter spaces host.

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