Bitcoin surges past $65,000, hinting at a bullish April ahead

Bitcoin, the world's most popular virtual currency, keeps celebrating victories. Just a few days prior, it had surpassed $60,000 for the first time since 2021. While some speculated that the ceiling had been reached, bitcoin shattered another record.

On Monday – albeit briefly – the cryptocurrency soared past the $65,000 threshold. Experts, as reported by Bloomberg, suggest that this surge is propelled by American ETFs (Exchange-Traded Funds - a special type of investment fund traded on the stock exchange), which began operation as recently as January 11. The optimistic predictions from some economists, who believed that the green light from American regulators for these entities would boost the currency's value, were swiftly validated. Bitcoin has seen a notable uptrend, growing by 186% over the last year.

Media from across the pond highlight two entities fuelling this momentum - BlackRock and Fidelity, which have started to focus their efforts. Currently, there are 10 ETFs actively trading in virtual currencies.

Experts are now looking to April, when the so-called 'halving' event is set to take place. In essence, this is a process in which the reward for mining a bitcoin block (that is, the amount of new bitcoins awarded to miners for solving a complex mathematical problem) is cut in half.

As Konrad Ogrodowicz, a fund manager at Superfund TFI, elucidates in Parkiet, this effectively means that "the supply of bitcoin will halve." "This is undoubtedly a positive development and has always signalled the start of a bull market in the past," he notes. The forthcoming halving is cited as a key factor behind bitcoin's increasing value. Thus, bitcoin might not only continue its upward trajectory but could also aim for the next milestone - $69,000. However, it's uncertain whether the currency's value will endure or face a steep decline.