Bitcoin’s Meteoric Rise: Is It Magic or Just Institutional Power?

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Ah, yes. A full year since the 2024 Bitcoin halving, and what do we have? A collective cheer from the holders of this elusive digital currency, as they bask in its undeniable “resilience” despite the chaos of global trade wars. Truly, the world’s economy is burning down, but Bitcoin, oh no, it just rises like a phoenix. And why? Because more institutions are stepping in—because the system always needs someone with deeper pockets, right?

In May 2024, the Bitcoin halving reduced block rewards from 6.25 BTC to a more “humble” 3.125 BTC, slashing new Bitcoin issuance in half. It’s like cutting off the supply of the last vestige of hope left in this digital economy, only to see its value rise. Wouldn’t you know it? The magic of scarcity, the age-old trick!

But wait—let’s not ignore the looming trade war between the United States and China. The world is on the brink of financial disaster, tariffs flying left and right, and yet, Bitcoin has decided to just say “Not today, world!” Since April 2024, it’s up by a glorious 33%. The data from CryptoMoon Markets Pro would have us believe that this is all part of the grand plan—whatever that plan is. Does anyone know the plan? Maybe the Bitcoin gods do.

“Sure, Bitcoin’s doing great,” says Enmanuel Cardozo, the ever-doubting market analyst at Brickken. “But with this whole economic uncertainty, and the ever-present pressure of sellers, I think investors will wait for a more ‘definitive’ green light before diving in.” No kidding, Enmanuel. When your money’s at risk, why take chances? It’s all about that sweet, sweet confirmation bias.

But Cardozo has something interesting to say—albeit with an air of prediction. Apparently, institutional investments from firms like Strategy and Tether could push Bitcoin’s traditional halving cycle to accelerate. Cardozo imagines a world where this halving-induced cycle sees a “bottom” in Q3 2024 and a peak mid-2026. The kicker? He thinks it might all happen sooner. Isn’t that convenient? So, let’s get ready for the “fast track” version of Bitcoin’s rollercoaster. Hold on tight, folks. The “mature” market is coming for us all.

“The 2024 halving sets the stage for a possible peak in mid-2026. But with more liquidity, we may see things move faster. Wouldn’t that be something?”

Oh, but it doesn’t stop there! Bitcoin’s rise is inevitably tied to the US Federal Reserve. A rate cut? Oh, how sweet it would be. “More money into the system,” Cardozo suggests. This could be the “catalyst” to push Bitcoin upwards. Because why not? When the government prints money like it’s going out of style, Bitcoin gets a boost. It’s practically a law of nature at this point.

The halving itself? It’s just a little mechanism that guarantees Bitcoin’s scarcity, which, as we all know, is what makes Bitcoin “special” in the first place. Without it, Bitcoin would just be another cryptocurrency no one cares about. Maybe. Probably. Who knows?

Institutional Power and ETFs: The Magic Ingredient

Now, hold onto your seats, because here comes the real fun. According to Vugar Usi Zade, the COO of Bitget exchange (and let’s be real, his opinion is just the cherry on top of this institutional Sunday), Bitcoin ETFs and institutional investors are the real reasons for the fast-paced market cycle. Usi Zade believes that the growing scarcity due to the halving combined with institutional buying will “likely” push Bitcoin back to its all-time high if it breaks through $90,000 soon. And why wouldn’t it? We all know Bitcoin has this knack for coming back from the dead.

But of course, Usi Zade reminds us that “the timeline for price impact can vary.” Well, no kidding! Sometimes Bitcoin surprises us, sometimes it doesn’t. The market, ever the fickle mistress.

Bitcoin hit a new all-time high of over $109,000 on January 20, 273 days post-halving—just a few months after it was supposed to hit its peak. A mighty feat, no doubt, but not without its own share of drama. After all, it took Bitcoin 546 days to hit the all-time high after the 2021 halving, and 518 days after the 2017 one. Time, as always, is a relative thing, especially when we’re talking about a volatile beast like Bitcoin.

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2025-04-20 16:56