In November 2021, Bitcoin fell just one cent short of reaching the $69,000 (9 342 945 KES), which was a record at the time. It took the cryptocurrency almost two and a half years to surpass this historical high. The current growth has been ongoing for several months, showcasing enviable stability. Analysts agree—the ceiling has not yet been reached.

Current Situation

As of March 14, the Bitcoin exchange rate on the Binance exchange exceeded $73,600 (9 965 808 KES). Over the previous week, its value updated the historical high several times. Since the beginning of the year, the coin has appreciated by more than 70%, and its capitalization has exceeded $1.4 trillion. In the ranking of the largest assets by market capitalization, Bitcoin ranked eighth, outperforming silver and Meta company shares in the top ten.

The previous cycle’s peak was breached on March 5, when the price of Bitcoin confidently crossed the $69,000 (9 342 945 KES), only to plummet to $61,000 (8 259 705 KES) shortly thereafter. Within a day, the rate stabilized and continued to rise steadily.

According to a UN report, Kenya ranks fifth globally in cryptocurrency adoption, with 8.5% of the population owning cryptocurrency.

Why Bitcoin Is Appreciating—Main Reasons

Bitcoin is currently seeing a price increase, driven by a combination of several factors. The first reason is US regulators’ approval of spot exchange-traded funds (ETFs), which has significantly simplified access to buying cryptocurrency. The second is the upcoming halving event. The third is the general improvement in the situation on traditional financial markets.

Bitcoin-ETF

An ETF is an exchange-traded fund that pools various valuable assets. These, in turn, are divided into shares (trading units) that are traded on the exchange just like stocks.

In January 2024, 11 collective investment funds in Bitcoin were launched in the US financial market. Investors gained the ability to buy shares of these funds through simple brokerage accounts. The essence is that the crypto asset itself does not transfer to the buyer’s ownership, but the price of its shares will increase in line with the cryptocurrency’s price dynamics.

The increased demand for fund shares naturally leads to ETF issuers actively buying up digital coins to back their offerings. The IBIT fund by the international investment company BlackRock, whose Bitcoin balance now reaches almost 198,000 BTC (about $14 billion), is a prime example. Meanwhile, an average of a thousand bitcoins is mined daily. Supply significantly lags behind demand, leading to a deficit—a constant companion to the price increase of any asset.

Halving

Halving is a planned event originally embedded in Bitcoin’s code that occurs every four years. It’s an artificial process of reducing the rate at which new coins are generated, resulting in the miner’s reward for adding a new block to the blockchain being halved.

In the current cycle, the reward for confirming a block is 6.25 BTC. The upcoming halving, expected in April, will reduce the reward to 3.125 BTC. The cryptocurrency will become even more scarce: Bitcoin’s issuance is capped at 21 million digital coins, more than 19.6 million of which have already been mined.

The crypto market has undergone three Bitcoin halvings since its inception in 2009. Each time, this was accompanied by an increase in price: after each halving, the price reached a new historical peak within two years. This event further fuels crypto investors’ interest, leading to increased demand.

Situation on the Global Financial Markets

An expected improvement in the situation on traditional financial markets has been an equally favorable factor for Bitcoin’s trajectory. This was triggered by the potential lowering of key rates, as announced by the central banks of many countries at the beginning of the year. An IMF report, published in 2022, confirms the annual increase in correlation between digital currency and the stock market. The growing dependence of the crypto market on stock indexes is the result of influential institutional investors from various economic sectors entering the industry.

Is It Profitable to Buy Bitcoin Now?

The current situation on the cryptocurrency market suggests that Bitcoin’s price increase will continue. Experts had predicted this spring’s update of the historical maximum price as early as 2023. The course dynamics after previous halvings also indicate that growth will continue.

At the same time, it’s worth paying attention to the fear and greed index. After the coin’s maximum price update on March 5, it reached 90 points out of 100 for the first time in three years. This indicator reflects crypto investors’ current inclination to buy or sell digital currency.

During the rise in Bitcoin’s price, asset owners tend to greed, easily explained by the fear of missing out on profits. When the price falls and the index moves into the red zone, the emotional response becomes to sell coins.

According to the index creators, “extreme fear” (0–25 points) may indicate investors’ heightened concern, becoming a premise for a profitable asset purchase. Conversely, “extreme greed” (75–100 points) signals that a market correction and a decrease in price are expected.

However, a price rollback in the near future will not be a surprise. It’s a natural phenomenon following the peak: before continuing to rise, the asset must stabilize at a new level after encountering a decrease in demand and selling pressure.

Bitcoin Forecast

According to analysts at the Bitfinex crypto exchange, the Bitcoin to dollar exchange rate will surpass $100–120 000 (13 540 500–16 248 600 KES) by the end of 2024, and the historical maximum of the cycle will be reached in 2025. The American hedge fund Pantera Capital bets that by 2025, the coin will appreciate to $147 000. An even bolder forecast was made by the CEO of the cryptocurrency company Blockstream, Adam Back, stating that he expects Bitcoin’s price to rise to $100 000 (19 904 535 KES) before the halving occurs.

Despite all positive forecasts and dynamics, it’s important to remember that any cryptocurrency is a risky volatile asset. The value of the digital coin can rise or fall by thousands of dollars in just one day. There’s always the possibility of a negative event that could lead to a price correction, from unforeseen regulatory measures to the bankruptcy of major companies in the crypto industry.

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is a renowned author in the field of cryptocurrency and blockchain technology. With years of experience, he has gained extensive knowledge in the world of Bitcoin wallets and has become an expert in reviewing, analyzing, and providing insightful guides on the best wallets available in the Kenyan market. His expertise in wallet security is highly regarded, making him a trusted source of information for Bitcoin users in Kenya.

18 Comments

  1. Emily_CryptoGuru on

    As a cryptocurrency enthusiast, I believe that Bitcoin’s recent surge is a clear indicator of its unstoppable growth trajectory. The market sentiment is positive, and the upward trend is likely to continue based on solid fundamentals. The approval of spot exchange-traded funds by US regulators is a key factor propelling Bitcoin’s value higher, and with increasing adoption worldwide, the sky is the limit for this digital asset.

    • Hey Emily92, the recent appreciation of Bitcoin can be attributed to several factors, especially the approval of spot exchange-traded funds by US regulators. This significant move has greatly contributed to the rapid growth we are currently witnessing. Stay tuned for more updates!

  2. Bitcoin breaking its historical price record is a significant milestone, showcasing its strength and potential in the market. The current surge in value proves that the cryptocurrency has room for further growth, and it’s exciting to see where it will go from here.

  3. AlexandraCryptoExpert on

    It’s incredible to witness Bitcoin’s continuous surge in value. The recent achievements in price demonstrate the cryptocurrency’s remarkable resilience and potential for growth. I truly believe that Bitcoin has the capacity to redefine the future of global finance. The recent developments have left the financial world buzzing with excitement!

  4. I believe that the rising price of Bitcoin reflects its growing acceptance in mainstream financial markets. The recent approvals by US regulators for spot exchange-traded funds (ETFs) have undoubtedly fueled this surge in value. It’s truly remarkable to witness the cryptocurrency reaching new heights with such stability.

  5. As a cryptocurrency enthusiast, I’m thrilled to see Bitcoin breaking through historical price records. The steady climb towards new highs reflects the market’s strong confidence in its potential. It’s remarkable how quickly the narrative around Bitcoin has shifted from skepticism to mainstream acceptance.

  6. I find it fascinating how Bitcoin has been on such a remarkable journey, breaking historical price records and showing immense growth over the past months. It’s truly a testament to its potential and the enthusiasm in the market. Looking forward to seeing where it goes next!

  7. SarahSmith on

    It’s fascinating to witness Bitcoin breaking its historical price record. The current stability and growth are truly remarkable. Analysts seem to agree that there’s still room for further ascent.

  8. MichaelCrypto123 on

    As an avid crypto investor, I believe Bitcoin’s recent price surge is truly remarkable. The steady climb above $70,000 shows the strength and resilience of this digital asset. It’s exciting to witness Bitcoin’s growth potential unfold before our eyes. Cheers to more record-breaking milestones!

  9. EmilyCryptoExpert on

    Bitcoin’s recent surge to over $73,600 marks a significant milestone in the cryptocurrency market. I believe this bullish trend will continue, propelled by increasing mainstream adoption and positive regulatory developments.

  10. As a cryptocurrency enthusiast, I believe that Bitcoin’s recent surge is not just a temporary spike but a reflection of its growing acceptance worldwide. The stability shown over the past few months indicates a promising future for Bitcoin as a viable investment option.

  11. EthanCryptoExpert on

    As an experienced analyst in the field, I believe Bitcoin’s surge is not just a mere fluke. The cryptocurrency market has proven its resilience, and with increasing institutional adoption, it’s clear that the bullish trend is not going away anytime soon.

  12. As a cryptocurrency enthusiast myself, I am thrilled to witness Bitcoin breaking its historical price record. This upward trend not only reflects the coin’s stability but also boosts investor confidence in the digital asset market. It’s exciting to see how far Bitcoin has come and I believe there is still immense potential for further growth.

  13. As the value of Bitcoin continues to soar, it’s fascinating to witness the cryptocurrency market setting new records. It shows remarkable strength and stability, proving skeptics wrong. The current surge signifies a paradigm shift, and it will be intriguing to see how far Bitcoin can go.

  14. As a cryptocurrency enthusiast, I am thrilled to see Bitcoin breaking through its historical price record. The current growth trend and stability are truly impressive, indicating the potential for further advancements in the digital currency market.

  15. EmilySmith23 on

    As a cryptocurrency enthusiast, I believe that Bitcoin’s recent surge is not just a short-term hype. The market indicators show strong potential for further growth, and I am optimistic about its future trajectory.

  16. As a cryptocurrency enthusiast, I find Bitcoin’s recent price surge truly remarkable. It’s fascinating to witness its growth over the years. The ongoing stability and continuous rise in value are indicative of a bright future for Bitcoin. Let’s hope it continues to break new records and reach even greater heights!

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