Bitcoin is back, hitting a new all-time high of over $69,000 today as investors and traders get back into the cryptocurrency market.
According to Coinbase price data, the digital asset is currently trading for $69,324.58. That's an increase of 4% in 24 hours. In the last 30 days, the asset has risen by more than 58%. Its previous all-time high of $69,044 was reached in November 2021, over two years ago.
Since the beginning of 2023, BTC has risen by more than 300%. Before and after a brutal bear market, it traded for less than $17,000 per coin. So what has changed?
The most significant catalyst is the approval and successful launch of 10 spot Bitcoin ETFs. After a decade of denials from the SEC, the tide turned last June when BlackRock– the world’s largest asset manager – has submitted its own application for a Bitcoin exchange-traded fund.
Renewed interest from major investors and other major Wall Street firms sparked a bullish Bitcoin rally, and the asset began climbing back up the price charts.
At the end of the year, Bitcoin was trading comfortably above $42,000.
When the Securities and Exchange Commission finally approved Bitcoin ETFs in January, the price of Bitcoin saw a slight increase but then fell as crypto traders apparently “sold the news” and took their profits. Since the end of January, however, the price of Bitcoin has skyrocketed as interest in ETF products increased and retail investors got back into the game.
Over the past month, billions have flowed into Bitcoin ETFs, which trade like stocks on brokers and traditional exchanges. Purchasing shares of a Bitcoin ETF gives investors access to BTC without having to directly purchase and hold digital coins. The investor buys a share of the ETF and the issuer– like BlackRock – buys the Bitcoin and stores it on their behalf at a custodian bank like Coinbase.
And just as market analysts had predicted for years, Bitcoin ETFs have led to an influx of fresh capital flooding the crypto market. BlackRock alone now holds over $10 billion in Bitcoin.
During the 2021 bull market, the market was supported by retail investors who poured money into cryptocurrencies during a post-pandemic “easy money” period and near-zero interest rates.
This time, however, more experienced investors are involved, including companies like BlackRock and Fidelity. The question arises: how long will this bull market last? Analysts are divided, but with the Bitcoin halving supply squeeze still over a month away, things could get very interesting indeed.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.
Edited by Stacy Elliott.
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