Bitcoin has once again smashed through expectations and disbelief, vaulting past the $71,000 mark for the first time ever. The surge didn’t come out of nowhere. It’s been building up steam ever since the U.S. SEC gave the green light to spot bitcoin exchange-traded funds (ETFs).
Just last week, Bitcoin flirted with $70,000, but it wasn’t ready to settle there, so it saw a minor correction. Now, we’re looking at a price tag of $71,805, and it’s not just Bitcoin that’s enjoying the sunshine. Ethereum has soared past $4,000, hitting a high of $4,015, thanks to an 80% surge in trading volume over the last day. It seems like traders can’t get enough of it, and who can blame them?
But there’s more. Other top players like XRP, Solana, Cardano, Dogecoin, and Shiba Inu are all jumping on the bandwagon, posting gains between 3% to 8%. It’s like the entire crypto market decided to put on its dancing shoes, pushing the global cryptocurrency market cap up to a staggering $2.69 trillion.
On March 11, Bitcoin decided to up the ante, reaching a new all-time high of $71,415. That’s right, it managed to add a little more to its plate within a mere week, rallying over 15% in the past seven days and a whopping 52% over the past month.
Let’s talk timing, because it’s everything. Bitcoin hit this new all-time high just 36 days before the much-anticipated halving. The halving will cut the mining reward in half, from 6.25 BTC to 3.125 BTC. It’s a big deal because it affects how much new Bitcoin is entering the market.
The bull run has also about increased institutional interest, thanks to the launch of spot Bitcoin ETFs in the United States. These ETFs are gobbling up Bitcoin, holding over 4% of the total supply. With over $56.9 billion in on-chain holdings, they’re projected to soak up 8.65% of the BTC supply annually. How stunning is that?
This institutional interest is highlighted by the digital asset manager Bitwise, which says that institutions holding trillions in assets are gearing up to dive into spot Bitcoin ETFs by the end of June. Meanwhile, Bitcoin whales are holding tight to their stash, despite these new highs, with the number of unique addresses holding at least 1,000 BTC rising to 2,107.
Sadly, Bitcoin’s price volatility remains a big concern for the community. The largest cryptocurrency has nailed its highest-ever price, but breaking higher or even staying there might be a tough battle. The relentless bid from spot exchange-traded funds is pitted against selling pressure at key psychological levels, making it hard to predict which direction Bitcoin will sway next.
The hype around spot ETF buying is reshaping expectations, with even the staunchest bulls rethinking their modest forecasts. Some people now think that the price of $1 million for Bitcoin is too low, while others caution that this rapid climb could trigger a macro top sooner than later.
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