Jaap Arriens | NurPhoto | Getty Images
Bitcoin has reached a new all-time high for the first time in more than two years, as this year’s rally, fueled by excitement over bitcoin exchange-traded funds and the upcoming halving event, has accelerated.
The price of the cryptocurrency topped $69,210 on Tuesday morning before retreating, according to Coin Metrics. It was last trading lower by 5% at $64,208.79. The flagship crypto notched its previous record of $68,982.20 on Nov. 10, 2021, about a year before the catastrophic failure of FTX plagued the crypto industry in what some call crypto’s Lehman Brothers moment.
“Bitcoin reclaiming its all-time high yet again shows it is never going away,” said Alex Thorn, head of research at Galaxy Digital. “In its 15 years of existence, bitcoin has seen four 75% [plus] drawdowns, and each time it has come roaring back.”
Clara Medalie, research director at crypto data provider Kaiko, echoed that sentiment, saying a new record is “an important psychological milestone” and “demonstrates crypto’s remarkable ability to bounce back and continue to persevere despite big headwinds.” However, it “doesn’t have much material impact on the pace of innovation in the industry,” she added.
“Bitcoin becomes more useful as it grows more valuable,” Thorn added. “At higher market caps and daily float, it can support larger allocations. Bitcoin’s volatility has consistently decreased over time, allowing allocations to take larger position sizes.”
Bitcoin reclaims its all-time high
Since the beginning of February, investors have been watching key themes in the bitcoin narrative push its price higher.
Catalysts driving the surge in the cryptocurrency include the U.S. spot bitcoin ETFs that started trading earlier this year, along with the tightening bitcoin supply ahead of the late April “halving.” This event is designed to create a scarcity event around the asset. The flagship crypto’s upward trend accelerated this week.
The…
Read the full article here
