Benzinga - Bitcoin's (CRYPTO: BTC) value has been on the rise over the past few days, apparently fueled by expectations of the upcoming halving and the possibility of a U.S. Federal Reserve interest rate cut, which could counterbalance slower growth and tightening credit conditions due to issues in the banking sector.
Bitcoin is currently trading at the $30,200 level, according to data from CoinGecko.
Since the beginning of the year, the world's largest cryptocurrency has experienced impressive growth of more than 80%.
Speaking with Benzinga, leading industry experts weighed in on the reasons behind the price rise and shared their expectations for the future of Bitcoin.
Sumit Gupta, co-founder and CEO of CoinDCX said: "Bitcoin has once again proven its resilience, as it touches the $30,000 mark. This speaks volumes about the potential of this decentralized asset class. As more individuals and institutions embrace Bitcoin and other VDAs, we are witnessing the evolution of a new era of finance."
Ilya Volkov, CEO at YouHodler, believed there is a high probability of further rallies, with the next resistance level expected at around $36,000 to $39,000.
"There are various pro-growth factors at the moment, one of them is a decrease in supply caused by rapid mining complexity growth, now it is at a historic high, and by BTC outflow from CEX to private/cold wallets, this means that a lot of investors currently prefer 'hodl' strategy and they are ready to hold the asset for the long term," Volkov said.
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Igor Mandrigin, co-founder and CTO of Gateway.fm, pointed out the Federal Reserve's interest rate policy has played a significant role in Bitcoin's price, with many investors expecting the central bank to pause interest rates.
"A potential reduction in interest rates can infuse liquidity into the economy and lead to an increase in demand for riskier assets like Bitcoin," he said.
Lucas Kiely, CIO of digital wealth platform Yield App, suggested low liquidity and volume during the weekend may have contributed to the surge in Bitcoin's price.
"As trading activity resumes after the Easter holidays, we may witness a more pronounced movement in price due to increased market participation," he noted.
Julius de Kempenaer, crypto expert and senior technical analyst at Stockcharts.com, said that once Bitcoin holds the breakout above $28,500 and leaves the resistance area behind, a more meaningful rally targeting $45,000 to $47,500 could be anticipated.
He added the outlook for Ethereum (CRYPTO: ETH) appears similar to that of Bitcoin, with the next battle for ETH expected to occur between $1,900 to $2,000.
James Davies, CPO at Tacans Labs, highlighted that by crossing the $30,000 mark, Bitcoin has conquered several crucial support levels.
"If buyers continue with their momentum, the price could reach $35,000 in no time," he said.
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