The cryptocurrency managed to advance 160% since October last year.
He bitcoin reached an all-time high this Tuesday, driven by investors pumping money into spot-traded crypto products in USA and the perspective that interest rates world prices may go down.
The biggest cryptocurrency in the world reached a high of $69,202, surpassing the all-time high of $68,999.99 in November 2021. Investor interest has increased since the Securities and Exchange Commission approved 11 spot bitcoin ETFs in late January. The day, however, closed below that value, after a drop of 7.04% to $62,745.23.
The meteoric rise of bitcoin of almost 160% since October – of which 44% occurred in February alone – contrasts with 2022, when the market was hit in a long 18-month crypto winter, plagued by a series of high-profile corporate bankruptcies and scandals.
In addition to demand from a broader group of investors, the bitcoin, and the cryptocurrencies In general, they have been boosted by the prospect that Federal Reserve cut interest rates in USA, often prompting investors to divert capital toward higher-yielding or more volatile assets.
“Bitcoin’s all-time high marks a turning point for cryptocurrencies,” he said Nathan McCauley, CEO and co-founder of the Anchorage Digital platform. “Traditional institutions were on the sidelines; today they are here in full force as the main drivers of the cryptocurrency bull market,” he added.
Furthermore, this year, investors have opted for cryptocurrencies, large-cap technology stocks and investment-grade corporate bonds. Despite its recent popularity, many investors find bitcoin too volatile and lacking enough real-world applications to be anything more than a speculative asset.
Source: Ambito
