Bitcoin has once again captured investors' attention by reaching $123,000, although it has since seen a slight decrease. Other cryptocurrencies have also faced changes in their quotes.
Overview of the Current Market Situation
On the first trading session of the week, Bitcoin rose above $123,000, but by market close, the price fell below $120,000, indicating a modest increase of 0.6% over 24 hours. Ethereum also showed a decline, moving below $3,000, while cryptocurrencies like Dogecoin, Cardano, and Stellar fell by 2-3%. In post-market trading in the U.S., a slight recovery was observed in some altcoins.
The Arrival of the Altcoin Bull Market
Despite the overall weakening of the market, some significant cryptocurrencies are demonstrating positive dynamics. XRP, SUI, and Uniswap’s UNI token increased by 2.5%, 10%, and 6%, respectively. Shares of companies linked to the cryptocurrency market have retraced some morning gains, but shares of MicroStrategy and Galaxy closed up 3-4%, while Coinbase shares recorded a 1.5% rise. The recent sharp increase of over 10% in Bitcoin and even larger gains in some altcoins prompted discussions about potential short-term price stabilization.
Long-Term Outlook for Bitcoin
Eric Demuth, CEO of the Bitpanda exchange, noted that one of the main reasons for Bitcoin’s price increase is the rising global state debts and investors seeking safe havens against inflation. He suggested the possibility of BTC reaching 200,000 euros ($233,000), emphasizing that its adoption is more significant than price targets. Demuth also posed a critical question: 'What happens when Bitcoin becomes permanently included in major investors’ reserves or global banking infrastructure?' Analysts believe that in the coming years, Bitcoin’s market value might gradually match the approximate $22 trillion market cap of gold, which is nine times larger than Bitcoin.
Expert observations indicate that current fluctuations in the cryptocurrency markets continue amid short-term selling pressures and sustained investor interest. Long-term macroeconomic conditions and large investors adding more crypto assets to their portfolios could emerge as decisive factors in Bitcoin’s integration process into the financial system.
