Bitcoin's price continues to maintain a robust upward course as it fast approaches the notable benchmark of $35,000, with the digital currency demonstrating strength both in its capacity to act as a safe haven during market declines - as recently experienced - and as an asset with speculative value during periods of growth.
The potential launch of a US physical cryptocurrency ETF - the first US-domiciled offering of its kind – has also served to significantly propel Bitcoin forward.
Meanwhile, a key milestone on the timeline for the digital currency is the forthcoming halving set for April 2024. Halvings are recurring events that transpire every 210,000 blocks - or roughly every four years - within the blockchain infrastructure supporting this digital currency. This procedure entails cutting miners' block rewards by half.
From a historical perspective, these halving occurrences have frequently correlated with price increases in cryptocurrencies like Bitcoin. The decrease in block rewards contributes to reducing supply while demand stays steady or grows - consequently paving the way for potential price surges.
This year alone has seen some cryptocurrency funds rallying upwards of 100%, highlighting their growing appeal among global investors. Following this trend, the ETC Group Physical Bitcoin (BTCE) appreciated +1.44% over the week attracting nearly $48 million in inflows. Meanwhile, the FT Wilshire Bitcoin Blended Price Index (FTWBTC) gained +0.94% over the same period, bringing its year-to-date performance to 110.14%.