Bitcoin has surpassed its all-time high (ATH) of $68,789, reached in November 2021! After an impressive sequence of gains in recent weeks, Bitcoin, the leading cryptocurrency in the market, has managed to exceed its previous record.
According to reports from CoinMarketCap, a renowned cryptocurrency price tracking platform, the value of Bitcoin has experienced a notable increase since October 2023, appreciating by approximately 140% to date. This year, in particular, has seen a 40% growth in the cryptocurrency’s price, emulating the upward trend that took place in 2021, just before establishing its previous all-time high.
Bitcoin ETFs, possible explanation
Bitcoin spot ETFs approved by the United States Securities and Exchange Commission (SEC) have marked a significant milestone in the cryptocurrency industry, offering a new way for large investors to access Bitcoin more directly. This development is significant not only for the innovation it represents in the financial market but also for the potential impact on the price of Bitcoin due to increased demand and institutional legitimacy.
On January 10, 2024, the SEC gave the green light to 11 applications for Bitcoin spot ETFs from issuers such as BlackRock, Fidelity, Grayscale, ARK 21Shares, Bitwise, WisdomTree, VanEck, Invesco Galaxy, Valkyrie, Hashdex, and Franklin. These funds are listed on various platforms, including the Chicago Board Options Exchange (CBOE), the New York Stock Exchange (NYSE), and Nasdaq, offering a wide range of options for investors interested in gaining exposure to Bitcoin without directly owning the cryptocurrency.
Since their approval, these Bitcoin spot ETFs have attracted significant attention, accumulating $10 billion in assets under management (AUM) in less than a month, with inflows reaching one billion dollars in a single day. This rapid growth underscores the interest and accumulated demand for regulated and accessible cryptocurrency investment products.
The introduction of Bitcoin spot ETFs has been seen as a game-changer for the industry, with the potential to attract more institutional investors to the crypto space, which could result in sustained demand for Bitcoin.
Halving, the upcoming change in April
The arrival of the next Bitcoin halving, scheduled for April 2024, is generating considerable interest in the cryptocurrency community about its impact on the price of Bitcoin and the mining ecosystem. Historically, halving events, which halve the reward for mined block, have been followed by significant increases in the price of Bitcoin, due to the decrease in the supply of new bitcoins and the increase in the scarcity of the cryptocurrency.
Experts and analysts have offered various predictions about the effect of halving on the price of Bitcoin, with estimates ranging from moderate increases to reaching new all-time highs. Now, with the 2021 ATH already surpassed, the limit is unknown. Estimates vary widely and depend on multiple factors, including institutional adoption, regulations, and the global economic environment, but what is a fact is that Bitcoin has today marked a new milestone in its short history.
