Bitcoin’s Price Breaks Its All-Time High. What Does That Mean for PulseChain?

Last week, the crypto market proved its naysayers wrong—yet again.

On March 14, 2024, Bitcoin set a new record by reaching its highest price so far: around $73,738 USD per coin.

After a multi-year long period of doubt, this was huge news for the world’s most popular cryptocurrency.

Here’s why I think this could be big news for PulseChain (PLS) as well.

Do note, however, that this article is my opinion, and it doesn’t contain financial advice. 

Bitcoin’s ATH Hasn’t Been Broken Since 2021

The last time Bitcoin broke its price ceiling was back in October 2021. At that time, BTC was valued at over $67,600 per coin (according to CoinGecko). 

Since then, BTC’s price plummeted, dropping to lows of under $16,000 in late 2022.

For crypto skeptics, this price fall was used as evidence that the so-called ‘crypto bubble’ had burst. 

That same year, the Wall Street Journal published an article titled “The Crypto Party Is Over” and thought pieces about the death of the crypto landscape were in no short supply.

But even for those with diamond hands and a strong commitment to crypto, Bitcoin’s recent price resurgence—which the New York Times has called a “stunning comeback”—is undoubtedly a moment of relief.

It proves, if nothing else, that you can never count crypto out of the equation.

Why Did Bitcoin’s Price Surge in 2024?

As for why BTC’s price rose again, it’s impossible to know for sure. But there are a few factors that may be in play.

First and foremost, many are pointing to the popularity of the recently-approved spot Bitcoin ETFs in the US. These spot ETFs reached a daily high right after BTC broke its ATH.

Second, the next Bitcoin halving is set to take place in April 2024. These halvings are cyclical, taking place roughly every four years.

Historically, BTC enjoys a price increase after halvings take place. But this time around, anticipation of the halving may have caused the price to skyrocket earlier than expected.

What Does This Mean for PLS?

In theory, BTC’s incredible price performance should mean great things for other coins in the crypto market.

This is thanks to a concept known as Heart’s Law. It's used to describe the phenomenon in which the price of one cryptocurrency rising causes the price of other digital assets to spike as well.

Heart’s Law attributes this to the fact that many cryptocurrencies are bonded together by liquidity and trading pairs. 

When the price of bitcoin goes up, for instance, ether (ETH) tends to do the same.

However, this time around, PLS’ price has not yet followed in BTC’s footsteps by breaking its own all-time high.

Though, in fairness, neither has ETH.

This could be for a few reasons.

First, PLS is still a new chain; it hasn’t even been live for a full year.

PulseChain launched in May 2023, which is also when the price of PLS set its current all-time high. Understandably, this was during a period of mass excitement for the chain.

In addition, PLS is not listed on many major exchanges. When coupled with the fact that it has not been live for very long, this could explain why average investors have not been as aware of the value of picking up PLS during a Bitcoin-centric news cycle.

Finally, it is not unheard of for “alt-coins” to take their time when appreciating in price. 

While an increase in the price of bitcoin can often be the match that ignites movement in the price of other digital assets, this is often not an instantaneous process.

While no one can predict with any certainty what will happen next, this recent record-breaking moment has reminded us all of two important truths:

You can never count crypto out for very long, and you can’t afford to take your eyes off the market.