Bitcoin Smashes All Time High Again: Is $100k on The Cards Soon?

The cryptocurrency market has been abuzz with excitement as Bitcoin, the world’s largest cryptocurrency, has once again broken through the $71,000 price point, setting new all-time highs.

This occasion marks the second time in Bitcoin’s history that it has reached such heights, with the first instance occurring just a few days prior on March 8.

TLDR

• Bitcoin has broken through the $70,000 price point for the second time in its history, setting new all-time highs.
• The arrival of spot Bitcoin ETFs in the US has spurred Bitcoin’s latest rally, with these ETFs acquiring a significant amount of bitcoins.
• The upcoming Bitcoin halving in April is expected to reduce the amount of bitcoin issued per day, potentially impacting the price.
• Miners are locking in profits prior to the halving, with outflows from miner wallets increasing since the launch of ETFs.
• Gold has also hit record highs, surging above $2,187 per ounce amid a declining US dollar and Treasury bond yields.

The recent surge in Bitcoin’s price can be attributed to the arrival of spot Bitcoin ETFs in the United States. These ETFs have been eagerly awaited by investors and have already made a significant impact on the market.

Since their launch, these ETFs have acquired an additional 177,000 bitcoins, adding to the already impressive 621,000 held by Grayscale’s Bitcoin Trust, which has now been converted into an ETF.

Together, these ETFs manage approximately 4% of all bitcoins in circulation, showcasing the growing institutional interest in the cryptocurrency.

As Bitcoin continues to reach new heights, the cryptocurrency community is also looking forward to the upcoming Bitcoin halving event, estimated to occur on April 19.

The halving will see the block rewards for miners reduced from 12.5 bitcoins per block to 6.25, effectively reducing the daily issuance of new bitcoins by around 900, worth approximately $73 million at current prices.

This reduction in supply is expected to have a positive impact on Bitcoin’s price, as scarcity often drives value in financial markets.

Miners, the backbone of the Bitcoin network, are wasting no time in locking in profits prior to the halving. Data from CryptoQuant reveals that outflows from miner wallets have significantly increased since the launch of the ETFs on January 11.

This suggests that miners are taking advantage of the current price levels to secure their gains before the halving potentially impacts their revenue.

Interestingly, Bitcoin is not the only asset making waves in the financial world. Gold, often considered a safe-haven asset, has also hit record highs, surging above $2,187 per ounce.

This rally comes amidst a declining US dollar and Treasury bond yields, as investors seek to protect their wealth in uncertain economic times. The simultaneous rise of both Bitcoin and gold highlights the growing demand for alternative assets as investors navigate the ever-changing financial landscape.

As the crypto market continues to evolve and mature, institutional investors are becoming increasingly comfortable with allocating funds to Bitcoin and other cryptocurrencies.

This growing acceptance and adoption by major players in the financial world is expected to drive further price appreciation and solidify Bitcoin’s position as a legitimate asset class.