Bitcoin Hits US$60,000: Is it set for an all Time High?
This week, Bitcoin has hit US$60,000 for the first time in over two years, as new investors rush to take their slice in the booming cryptocurrency on a 42% price rise after the US Securities and Exchange Commission (SEC) approved spot exchange-traded funds (ETFs) back in January of this year.
Bitcoin’s latest milestone comes after it recently reclaimed its US$1tn status as the leading cryptocurrency with all circulating Bitcoin topping US$2tn in February 2024, according to CoinGecko.
More traders are expected to pour into the new spot ETFs market too ahead of Bitcoin’s April 2024 halving event, a process designed to slow the release of the cryptocurrency.
Anticipation for US Federal Reserve rate cuts this year has also helped fuel investor appetite for more risky but potentially higher-yielding assets.
Bitcoin: Is it set for an all-time high?
Indeed, with the biggest approved spot Bitcoin ETFs surging – namely Grayscale, Fidelity and BlackRock – with no end in sight, Bitcoin could well be set for an all-time price high.
This week alone, 110 million shares changed hands between these spot ETFs, over 50% of the 215 million total shares traded by the markets most valuable companies, including Apple, Microsoft and NVIDIA, according to data from the London Stock Exchange Group (LSEG).
The activity in Bitcoin trading is close to unprecedented, and the cryptocurrency’s price could be edging ever closer to its highest ever.
XBTO CEO Philippe Bekhazi says: "The recent increase in Bitcoin prices can be attributed to significant demand factors, particularly the influx of capital into spot ETFs, which has reached record levels.
“This substantial inflow has subsequently led to gamma squeezes in the options market, as option sellers are forced to hedge their positions by purchasing BTC, further fuelling the price rise.
"Looking ahead, we anticipate that the continued inflows into spot ETFs will maintain the upward momentum in BTC prices. As we approach the BTC halving event, this trend is expected to persist, potentially leading to further appreciation."
Nigel Green, deVere Group CEO adds: “If the current momentum continues, we expect that Bitcoin could beat the previous all-time high in a matter of weeks.
“As more institutional players enter the space, the increased demand for Bitcoin has been driving prices higher. The influx of institutional capital also adds a layer of stability to the market, potentially mitigating some of the volatility traditionally associated with cryptocurrencies.
“The broader acceptance of cryptocurrencies, with major companies now accepting Bitcoin as a form of payment and traditional financial platforms integrating digital assets, is attracting a more diverse range of retail investors.
“User-friendly exchanges and mobile apps have made it easier than ever for retail investors to enter the crypto market, contributing to the democratisation of cryptocurrency investing.
“This combination of institutional and retail interest is creating a dynamic and robust ecosystem that could propel Bitcoin to new heights.
“Nothing is for sure, of course, and cryptocurrencies remain highly speculative, but the enormous interest in spot ETFs and the upcoming halving event - which only happens every four years - can be expected to continue to fuel the current momentum which could lead Bitcoin to surpass the $69,000 mark.”
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