The price of the flagship cryptocurrency Bitcoin ($BTC) has surged by more than 57% so far this year and has briefly surpassed its previous all-time high before enduring a correction. Its rapid rise prompted comparisons to the 2021 bull run when Bitcoin tripled in price within three months of breaking its previous record.
Analysts are cautiously optimistic about Bitcoin’s future trajectory, with some predicting a potential surge into six-figure territory, partly based on the cryptocurrency’s performance during its previous bull run.
This optimism stems from historical precedent: in both 2012 and 2016, Bitcoin experienced significant price increases following similar record-breaking rallies.
The long-awaited approval of these ETFs in January 2024 ushered in a period of volatility, followed by a more sustainable uptrend for the flagship cryptocurrency, which culminated in it breaking its previous high seen in November 2021.
With the upcoming Bitcoin halving, a pre-programmed event scheduled for next month that reduces the supply of new coins, analysts are drawing parallels to past halving cycles. These historical periods have often been followed by significant price increases, further bolstering the current bullish sentiment.
Should history repeat itself, Bitcoin could potentially surpass $200,000 by June, which would see its total market capitalization top $4 trillion.
As CryptoGlobe reported large Bitcoin holders, often referred to as “whales,” are defying historical trends by accumulating the flagship cryptocurrency even as its price rises near record highs.
This whale behavior deviates from historical patterns, where these large investors typically buy during periods of lower prices and sell as prices rise.
As reported, Deribit’s Bitcoin Volatility Index (DVOL), a measure of the 30-day implied volatility of Bitcoin options, has surged to a 16-month high. The index has risen from an annualized 41% to 76% in just one month, reaching its highest level since November 2022 in what appears to be good news for BTC holders looking to generate income from the options market.
Deribit’s overall trading activity has surged alongside Bitcoin’s 58% increase this year. The total notional open interest across crypto futures and options on Deribit has reached a new peak of $32 billion, with the options market contributing almost $30 billion to this figure.
Featured image via Pixabay.
