Bitcoin is trading over $50,000 once more, but this time it’s different.

More than two years ago, bitcoin’s price last exceeded $50,000. This time, the cryptocurrency market appears completely different. In sharp contrast to just two years ago, Bitcoin’s rise to $50,000 on Monday coincides with increased institutional demand, a potential change in interest rates, and impending scarcity due to the cryptocurrency’s halving.

According to data, Bitcoin last reached the $50,000 mark in December 2021. At that time, most investors are unaware that the cryptocurrency market about to collapse into an extended bear market that would characterized by 11 consecutive interest rate hikes in the US, the failure of several well-known crypto institutions, and a mass exodus of retail investors from the space, which resulted in Bitcoin falling to $15,800.

 Josh Gilbert, a market analyst at eToro, told Cointelegraph that macro conditions are becoming more and more beneficial for riskier assets like Bitcoin, too.

 “The Federal Reserve is planning four or five cuts in 2024, along with the fourth halving of bitcoin, which will increase the asset’s scarcity, and more inflows into bitcoin ETFs, which have already seen billions of dollars flow in just a few weeks since their launch.”

Bitcoin Halving and Institutional Inflows Signal Positive Momentum

According to Gilbert, the impending halving of Bitcoin is the first significant event that many investors are watching. The halving will reduce Bitcoin miners’ mining incentives by half. It is set to take place in April. Many investors generally view it as a long-term positive catalyst for the price of Bitcoin.

According to Gilbert, the market is becoming more confident that institutions are purchasing Bitcoin at an increasing rate due to the favorable attitude surrounding the performance of Bitcoin ETFs.Spot Bitcoin ETFs have drawn inflows of $1.1 billion over the last week, according to a CoinShares report dated February 12. This is the largest seven-day period of inflows since the ETFs went live on January 11.

While retail interest has remained minimal, Will Clemente suggests this may point to a more stable basis for market expansion. According to data from Google Trends, interest in the search phrase “Bitcoin” centered around a score of 39 in December 2021. Only 19 people interested in Bitcoin at publication, indicating a comparatively low degree of retail interest in the asset.

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Based on the performance of spot Bitcoin ETFs, Ki Young Ju, CEO of analytics firm CryptoQuant, estimated on February 11 that Bitcoin might reach $112,000 per coin in 2024.