Bitcoin’s price skyrocketed to a remarkable milestone, surpassing $69,200 on March 5, with a 5% gain in the previous 24 hours. This surge marks a new all-time high for the world’s first cryptocurrency, surpassing the previous record of $68,990 set on the Coinbase exchange on November 10, 2021.
The surge in Bitcoin’s price can be attributed to significant inflows from new spot Bitcoin exchange-traded funds (ETFs) in the United States. These ETFs have introduced a passive and price-agnostic demand for Bitcoin, solidifying its position as a valuable asset and resulting in its price appreciation. Bitfinex analysts, in a research report shared with Cointelegraph, highlighted that these spot ETFs could potentially stabilize Bitcoin’s downside volatility following new cycle tops.
The impact of Bitcoin ETFs on the cryptocurrency market has been substantial. According to CryptoQuant research, by February 15, Bitcoin ETFs accounted for approximately 75% of new investments in the largest cryptocurrency in the world as it surpassed the $50,000 mark. In fact, a research report shared by senior Bloomberg analyst Eric Balchunas and associate analyst Andre Yapp suggests that Bitcoin ETFs could surpass gold ETFs in terms of assets under management within the next two years.
Despite the significant surge to a new all-time high, experts warn of potential volatility for Bitcoin following the upcoming halving. Paul Eisma, head of options trading at XBTO Futures, cautioned that while the cryptocurrency has reached new heights, it could still experience fluctuations in its value.
This story is still developing, and additional information will be provided as it becomes available.