Bitcoin Price Reaches New All-Time High
BTC
$65,351.0
-1.51%
Bitcoin (BTC) price hit a new all-time high above $69,200 on March 5 after rising 5% over the past 24 hours.
The world's number one cryptocurrency has surged more than 21% over the past week, breaking its previous all-time high of $68,990, which was recorded on the Coinbase exchange on November 10, 2021.
The record high followed large inflows from new spot bitcoin exchange-traded funds (ETFs) in the US.
According to a research report from Bitfinex analysts published by Cointelegraph, ETFs have created passive, price-neutral demand for Bitcoin, strengthening its status as a store of value, which is driving up its price.
“Our analysis predicts that a conservative price target of $100,000–$120,000 will be reached by Q4 2024, with the cycle peak occurring sometime in 2025 in terms of total cryptocurrency market capitalization.”
Spot ETFs could ease Bitcoin's downward volatility after it reaches new cycle highs, analysts say.
"The fact that we now have an ETF potentially means that any decline after the current cycle top could be less sharp than previous declines. We have seen a similarly stable price trajectory following the huge rally following the launch of gold ETFs."
Bitcoin ETFs have become a major part of the current rally. According to research from CryptoQuant, Bitcoin ETFs now account for about 75% of new investment in the world’s largest cryptocurrency since it surpassed $50,000 on February 15.
Bitcoin ETFs could overtake gold ETFs in assets under management (AUM) in the next two years, according to a Feb. 26 research report by Bloomberg senior analyst Eric Balchunas and junior analyst Andre Japp.
Despite hitting a new all-time high, Bitcoin could see significant volatility after the halving, according to Paul Eisma, head of options trading at XBTO Futures. Eisma told Cointelegraph:
“The crypto ecosystem will experience simultaneous pressure for the first time from the deflationary impact of the supply halving, as well as the still ongoing ETF demand shock… In the December 2024 options market, forward breakeven prices are currently priced in the $55,000–$85,000 range with implied volatility around 65%.”
Related: The Next Cryptocurrency Leap: Ethereum ETFs Via Keyrock's Kaleidoscope
This is a developing story and additional information will be added as it becomes available.$BTC $BNB $ETH
