US Markets
Tuesday, March 5th, 2024 3:16 pm EDT
Key Points
- Bitcoin has surged to a new all-time high, surpassing $69,000, driven by excitement over bitcoin ETFs and the upcoming halving event.
- Industry experts view this milestone as an important psychological achievement, demonstrating bitcoin’s resilience and ability to bounce back despite challenges.
- The surge in bitcoin’s price is attributed to key catalysts such as the launch of U.S. spot bitcoin ETFs and the tightening bitcoin supply ahead of the late April halving event, signaling a triumph for the crypto industry amidst reputational and regulatory risks.
Bitcoin has surged to a new all-time high, surpassing $69,000, marking a significant milestone in the cryptocurrency’s history. Fueled by excitement over bitcoin exchange-traded funds (ETFs) and the upcoming halving event, this year’s rally has accelerated, with the flagship crypto’s previous record of $68,982.20 recorded on November 10, 2021. Alex Thorn, head of research at Galaxy Digital, emphasizes bitcoin’s resilience, noting its ability to rebound from significant drawdowns throughout its 15-year existence. Clara Medalie, research director at Kaiko, echoes this sentiment, highlighting the psychological importance of this achievement and demonstrating crypto’s remarkable ability to persevere despite challenges. Thorn further emphasizes that as bitcoin’s value increases, it becomes more useful and attractive for larger allocations, with its volatility consistently decreasing over time. Since the beginning of February, key themes in the bitcoin narrative have driven its price higher, including the launch of U.S. spot bitcoin ETFs and the tightening bitcoin supply ahead of the late April halving event, designed to create scarcity around the asset. This new record reflects a triumph for an industry that has faced reputational and regulatory challenges, with bitcoin’s legitimacy continually being questioned. John Todaro, an analyst at Needham, suggests that the new all-time high could attract retail investors back to the market, potentially leading to increased capital flows into altcoins. While bitcoin’s performance has been strong, investors should tread carefully as unrealized profit margins approach extreme levels, with expectations of a possible steep correction in the market. Nonetheless, the long-term outlook for bitcoin remains positive, supported by ongoing catalysts and the increasing legitimacy brought by U.S. spot bitcoin ETFs.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/03/05/bitcoin-all-time-high.html
