Home Market News Bitcoin reaches all-time high of $69,202 due to growing investor interest

Bitcoin reaches all-time high of $69,202 due to growing investor interest

by admin
2 comments

On Tuesday, Bitcoin surged to a record high, driven by investors investing in U.S. spot exchange-traded crypto products and the anticipation of potential global interest rate reductions. The world’s largest cryptocurrency reached $69,202, surpassing its previous all-time peak of $68,999.99 in November 2021. Investor enthusiasm has grown following the approval of 11 spot bitcoin ETFs by the Securities and Exchange Commission in late January.

Bitcoin’s remarkable rise of almost 160% since October, with 44% occurring in February alone, stands in stark contrast to the crypto winter of 2022. During that time, the market endured an 18-month period of downturn marked by numerous corporate bankruptcies and scandals.

Alongside increased demand from a broader investor base, bitcoin and cryptocurrencies, in general, have been buoyed by the possibility of the Federal Reserve reducing U.S. interest rates. This often leads investors to redirect capital into assets offering higher yields or greater volatility.


Investors have shown a strong interest in cryptocurrencies, especially mega-cap technology stocks, and investment-grade corporate bonds this year. Analysts attribute bitcoin’s rise partly to the upcoming halving event in April, occurring every four years, where token release rates and miner rewards are halved.

With only 21 million bitcoins available, 19 million have already been mined. Despite its recent popularity, many investors view bitcoin as too volatile and lacking sufficient real-world utility beyond being a speculative asset.

However, alongside the influx of money into ETFs and the potential for constrained bitcoin supply and reduced U.S. interest rates, some companies are incorporating cryptocurrencies into their corporate reserves.

What’s Driving Bitcoin’s Price Spike?

The recent rise in Bitcoin’s price is largely due to the approval of exchange-traded funds (ETFs) by the US financial regulator in January. These ETFs track Bitcoin’s price and represent baskets of assets traded on the stock exchange.

According to Jeff Billingham from research firm Chainalysis, this indicates a level of “institutional maturity” in the cryptocurrency market, a phenomenon not observed in previous periods of price surges, as reported by The Guardian newspaper.

Neil Wilson, Chief Analyst at brokerage firm Finalto, offers insights into the momentum of the Bitcoin market, stating, “It will eventually lose momentum. However, this doesn’t rule out further increases; it just suggests that some form of consolidation or correction is likely in the meantime,” according to The Guardian. Wilson attributes this potential shift to “typical” factors, including investors taking profits and a dwindling number of new buyers.

Bitcoin, a digital currency established in 2008, operates on a decentralized network without reliance on banks or governments. Transactions are recorded on a transparent and secure public ledger known as the blockchain, utilizing cryptographic technology for privacy and security. With a limited supply of 21 million coins, Bitcoin aims to prevent inflation, and new coins are generated through a process called mining. It provides users with a level of financial anonymity through pseudonymous transactions.

Neil Wilson, Chief Analyst at brokerage firm Finalto, offers insights into the momentum of the Bitcoin market, stating, “It will eventually lose momentum. However, this doesn’t rule out further increases; it just suggests that some form of consolidation or correction is likely in the meantime,” according to The Guardian. Wilson attributes this potential shift to “typical” factors, including investors taking profits and a dwindling number of new buyers.

Bitcoin, a digital currency established in 2008, operates on a decentralized network without reliance on banks or governments. Transactions are recorded on a transparent and secure public ledger known as the blockchain, utilizing cryptographic technology for privacy and security. With a limited supply of 21 million coins, Bitcoin aims to prevent inflation, and new coins are generated through a process called mining. It provides users with a level of financial anonymity through pseudonymous transactions.

You might also be interested in – EU imposes $2 billion fine on Apple for anti-competitive practices via App Store

Visited 19 times, 1 visit(s) today

You may also like

2 comments

Zomato drops 4% following a Rs 3,112-crore block deal, possibly by an Ant Group subsidiary - SMT FinMedia March 7, 2024 - 9:26 am

[…] You might also be interested in – Bitcoin reaches all-time high of $69,202 due to growing investor interest […]

Reply
Bitcoin briefly exceeds $70,000 as cryptocurrency frenzy drives yet another all-time high - SMT FinMedia March 9, 2024 - 1:59 pm

[…] You might also be interested in – Bitcoin reaches all-time high of $69,202 due to growing investor interest […]

Reply

Leave a Comment