Bitcoin (BTC), the leading digital currency globally, has experienced a remarkable surge of 23.5% over the past seven days, positioning itself close to its all-time high of $69,000, last observed in November 2021.
According to data from CoinMarketCap, as of 10:37 p.m. ET on Sunday, Bitcoin’s price stood at $63,500, accompanied by a surge of 51.87% in trading volume over the past 24 hours. With a market capitalization of $1.2 trillion, Bitcoin is currently just 7.37% away from reaching its historic peak.
Driving factors: Spot Bitcoin ETFs and inflow trends
The recent surge in Bitcoin’s price can be attributed significantly to the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States. The introduction of nine spot BTC ETFs saw unprecedented trading volumes, reaching a record high of $7.69 billion on February 28.
BlackRock’s iShares Bitcoin Trust (IBIT) has emerged as a frontrunner in the sector, boasting over $10 billion in assets under management (AuM) and marking a remarkable 35.2% gain year-to-date. Following closely is Fidelity’s WiseOrigin Bitcoin ETF, with an AuM of $6.55 billion.
Amidst this bullish momentum, prominent figures in the digital asset space have offered contrasting opinions regarding the duration of Bitcoin’s current bull run. A respected influencer, Ben Armstrong, confidently predicted the ongoing surge would halt on April Fool’s Day of 2025. Conversely, legendary trader Peter Brandt foresaw the end of the bull run in August or September 2025.
Implications and market outlook
The Bitcoin price surge holds significant implications for investors and the broader cryptocurrency market. Investors continue to flock towards Bitcoin as a hedge against inflation and a store of value, amplifying its demand and market capitalization. With institutional adoption on the rise, particularly evidenced by the influx of investments into Bitcoin ETFs, the cryptocurrency market is poised for further growth and mainstream acceptance.
