Bitcoin Rally Continues as Interest Rates, Halving Event Spark Debate Among Experts

The recent surge in Bitcoin price to $65,590 has encountered relatively few obstacles, fueled by a significant influx of capital into Bitcoin ETFs, reaching a staggering $7.35 billion in 2024. According to a recent report by Bloomberg, this institutional flow of funds is widely believed to be the driving force behind the ongoing bullish trend in the crypto market.

Traditionally, Bitcoin prices demonstrate a downward trend in the period leading up to the halving event as evidenced in past occurrences. Notable crypto expert, known as Capo and often labelled a ‘perma bear’ due to his perpetual bearish stance on Bitcoin, has predicted a potential decline in BTC price to $45,000, attributing this projection to the Federal Reserve‘s high interest rates.

A recent analysis from Bloomberg has shed light on the current bullish rally of Bitcoin, primarily attributed to the institutional capital inflows. Bitcoin’s surge to $65,555 marks its highest point in the year thus far, with analysts suggesting that the rally is driven by the increasing anticipation of demand for exchange-traded funds among market participants.

Bitcoin has seen a remarkable price increase of over 190% in the last 12 months, with a year-to-date surge of more than 55%. The data from Bloomberg indicates that institutional investors have poured in a staggering $7.35 billion since the inception of the Spot ETF, approved by the SEC for trading on January 11.

Despite the apparent momentum of Bitcoin’s price action reaching new heights, the bearish sentiment from the influential analyst Capo suggests a potential pullback towards the $45,000 level. In an analysis shared on his Telegram group, Capo highlighted the impact of high interest rates on Bitcoin’s valuation, outlining a scenario where extended high interest rates could lead to a market correction.