Tuesday afternoon set a new price record for the most popular cryptocurrency. Bitcoin briefly topped $69,000 yesterday in a stunning moment for the digital asset, before then dropping almost immediately. On Monday, bitcoin had already spiked to over $66,000 for the first time in almost three years. In addition to the crypto then staging a record-breaking price, others like ether, solana and dogecoin also staged rallies.
This should not be a surprising development, as the entire crypto market has been surging this year. In February, the value of the crypto market as a whole returned to $2.4 trillion for the first time in almost two years, according to Business Insider. Fuelling demand for bitcoin this year has been the approval of spot BTC ETFs by the US Securities and Exchanges Commission, which started trading in January. While outlooks following those approvals were overall quite optimistic for bitcoin, “the demand for these ETFs far exceeded anyone’s expectations,” said Matt Hougan, Bitwise chief investment officer.
Increasing demand from the ETFs, which have facilitated access to bitcoin investment, has resulted in more bitcoins being bought on average each day than new ones are created, as a Yahoo! Finance piece explained. Overall, bitcoin has surged almost 40% since the ETF approval in early January, and even though its suffered a mild drop after setting the record yesterday, the crypto is now back to over $66,000. The halving in just over a month is the next event that could drastically shift the bitcoin narrative. The expectation is that the halving will lead bitcoin to increase in price, as investors expect supply to diminish, so let’s wait and see. For now, congrats to bitcoin!
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