Bitcoin surges to new heights, breaking $70,000 barrier

In a surge of volatile trading, Bitcoin soared to an all-time high of $70,000 on Friday, fueled by the ongoing frenzy in the crypto investment landscape.

This marks a significant milestone for the leading cryptocurrency, driven by increased investor demand for new U.S. spot exchange-traded crypto products and optimistic expectations of a global decline in interest rates.

The cryptocurrency reached an impressive $70,105 before experiencing a swift drop, currently settling at $68,317.72. The recent influx of billions of dollars into exchange-traded funds (ETFs) has provided substantial support.

Furthermore, a positive market outlook is influenced by the upcoming upgrade to the Ethereum blockchain platform, which houses the second-largest cryptocurrency, Ether.

Additionally, anticipation surrounds the bitcoin “halving” event scheduled for April, which is expected to slow down the rate of bitcoin minting.

However, scepticism persists regarding the speculative nature of these digital assets. Despite reaching a record high earlier in the week, Bitcoin encountered a sharp reversal, plummeting more than 10 per cent and slipping below the $60,000 threshold.

Antoni Trenchev, co-founder of the crypto lending platform Nexo, acknowledged the challenges of navigating historic highs, stating, “Volatility defines bitcoin bull markets, and 2024 will be littered with sudden and gut-wrenching 10 per cent–20 per cent plunges.”

The approval of 11 spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission in late January marked a pivotal moment for the crypto industry.

This comes after an 18-month-long crypto winter plagued by corporate bankruptcies and scandals.

In a noteworthy shift, institutional investors, who were once cautious due to the unpredictable nature of crypto, are now committing long-term investments.

Analysts believe that this institutional support could play a vital role in sustaining the current upward momentum.

According to LSEG data, net flows into the ten largest U.S. spot bitcoin funds reached $2.2 billion in the week ending March 1, with over $2 billion of that directed towards BlackRock’s iShares Bitcoin Trust (IBIT.O).