PETALING JAYA: Cryptocurrency market cap leader Bitcoin is approaching the all-time high RM270,000 recorded during the 2021 bull market, and is currently trading on Luno at RM247,950.
In April 12, 2021, the conversion rate for US$1 was equivalent to RM4.13.
The milestone followed a week-long rally which saw Bitcoin up by around 20 per cent over the week.
In US dollar terms, however, Bitcoin is currently trading around USD51,910 - still a way off from the dollar's all-time high of USD65,000 in 2021.
Scarlett Chai, Luno's country manager for Malaysia, says, "As widely expected, 2024 is shaping to be a good year for the crypto industry with the Bitcoin halving taking place mid-April 2024. The excitement and anticipation of the Bitcoin halving are believed to be a catalyst for the market's growth".
Renewed investor confidence was buoyed by the performance of Bitcoin exchange traded funds (ETFs), which have attracted over US$34 billion from investors since being approved by the US Securities and Exchange Commission on January 10.
Last week, Bitcoin's market capitalisation surpassed US$1 trillion, amid recent traditional market unrest fueled by higher-than-expected CPI inflation data in the US. Several analysts anticipate continued growth on the back of ongoing bullish sentiment.
"While a potential bull run would present an opportunity for the public to increase gains, the public would still have to be watchful and be discerning with schemes that promise high returns over a short period," Chai cautioned.
What is Bitcoin Halving?
"Bitcoin Halving is a four-year cyclic event that decreases miners' rewards in half to ensure that an infinite supply of Bitcoin doesn't erode its value further down the line. Each previous halving has historically had a major impact on the price" said Chai.
The first halving saw price increases of more than 8,000 per cent from pre-halving levels. Bitcoin's value also increased roughly 3,000 per cent over the second halving cycle in 2016.
The last halving in 2020 was followed by a bull run that ended in an all-time high price of almost $65,000.
Chai also notes the changing dynamics on Luno, with altcoin Solana replacing XRP in third position after Bitcoin and Ether over the past two months.
"While XRP continues to be one of the top coins traded on Luno, this could point to new cycles and patterns in the crypto market," she said.