Bitcoin briefly exceeds $70,000 as cryptocurrency frenzy drives yet another all-time high

On Friday, Bitcoin surged to a new record high in volatile trading, reflecting the ongoing excitement surrounding cryptocurrencies among investors.

The leading cryptocurrency surpassed $70,000 for the first time, driven by demand for new US spot exchange-traded crypto products and anticipated declines in global interest rates.

It peaked at $70,105 before swiftly declining, currently trading at $68,317.72.

Billions of dollars have poured into ETFs in recent weeks, buoyed by optimism surrounding upgrades to the ethereum blockchain platform and an upcoming bitcoin “halving” event in April. However, skepticism remains due to the speculative nature of these assets.

Despite reaching a record high on Tuesday, bitcoin saw a sharp reversal, dropping over 10% below the $60,000 mark. Antoni Trenchev, co-founder of crypto lending platform Nexo, highlighted the unpredictable nature of navigating old highs in the bitcoin market, suggesting that volatility will continue to define bull markets in 2024, with sudden and significant price plunges expected.

In late January, the approval of 11 spot bitcoin ETFs by the Securities and Exchange Commission marked a pivotal moment for the industry. This came after an 18-month period of crypto downturn, characterized by numerous high-profile corporate bankruptcies and scandals.

Even institutional investors, previously hesitant due to the volatile nature of crypto, are now committing long-term investments. Analysts believe this influx of institutional money could sustain the current upward trend in the market.

According to LSEG data, net flows into the top 10 US spot bitcoin funds totaled $2.2 billion in the week ending March 1. Of this, over $2 billion flowed into BlackRock’s iShares Bitcoin Trust.

The recent enthusiasm for bitcoin has positively impacted other digital tokens, notably ether, the second-largest cryptocurrency by market value. Ether has surged over 60% since the beginning of the year.

Ether rose by 1.62% to reach $3,939.84.

On Friday, cryptocurrency stocks also saw gains, with Coinbase shares up by 8.2%, and crypto miners Riot Platforms and Marathon Digital increasing by 5.1% and 9.6%, respectively.

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