Bitcoin surged to a new all-time high above $70,000 on Friday, propelled by heightened demand for crypto products and anticipation of global interest rate cuts. The milestone comes amidst a wave of crypto enthusiasm sweeping through the investment community.
The leading cryptocurrency briefly surpassed the $70,000 mark before experiencing a swift pullback, settling at $68,317.72. This rally was fueled by investor interest in new U.S. spot exchange-traded crypto products, as well as expectations for a decrease in global interest rates.
The recent surge in Bitcoin’s price is also attributed to several factors, including the upcoming “halving” event in April, which reduces the rate of mining rewards.
Despite the optimism surrounding Bitcoin, there are concerns about the speculative nature of cryptocurrencies. After reaching a record high earlier in the week, Bitcoin experienced a sharp correction, falling by more than 10% below the $60,000 level.
The approval of 11 spot Bitcoin ETFs by the U.S. Securities and Exchange Commission in January marked a major milestone for the crypto industry, signaling growing acceptance and interest from institutional investors.
Institutional interest in Bitcoin is evident in the substantial inflows into U.S. spot Bitcoin funds, with net flows reaching $2.2 billion in the week ended March 1. BlackRock’s iShares Bitcoin Trust (IBIT.O) alone attracted over $2 billion in inflows during this period.
The positive sentiment surrounding Bitcoin has also spilled over to other digital tokens, particularly Ether, the second-largest cryptocurrency by market cap. Ether surged to $4,000 for the first time in over two years, driven by speculation surrounding the approval of spot Ether exchange-traded funds in the U.S.
Ether’s price has outperformed Bitcoin in 2024, registering a 73% year-to-date gain compared to Bitcoin’s 60%. This resurgence in Ether’s price comes after a period of significant volatility, including the collapse of the Terra ecosystem and the bankruptcy of crypto exchange FTX.
