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- After a 28-month period and a 77% drop from its low point, the price of Bitcoin
today surpassed the previous all-time high of $69,000. - Events impacting the broader cryptocurrency market included the collapse of the Terra Luna ecosystem and the subsequent bankruptcy of the crypto exchange FTX.
- David Lawant, the head of research at FalconX, noted that the lack of willing sellers, as stated in October 2023, is a factor contributing to the rise in prices.
Bitcoin has captured everyone’s attention by achieving a new price record after a challenging journey spanning years; the resilient journey of Bitcoin!
Bitcoin Price Sets a New Peak
After a 28-month period and a 77% drop from its low point, the price of Bitcoin today surpassed the previous all-time high of $69,000. The retracement of the leading cryptocurrency took a total of 846 days. Bitcoin gained approximately 346% in value after hitting a low above $15,000 in the last quarter of 2022. It increased by around 70% just this year.
Events affecting the broader cryptocurrency market included the collapse of the Terra Luna ecosystem and the subsequent bankruptcy of the crypto exchange FTX. Both had hindered the progress of the wider industry while addressing the aftermath of the related contagion.
Many attribute the acceleration of a new crypto bull market, and in some respects, even surpassing bullish expectations, to the approval of spot bitcoin exchange-traded funds (ETFs) in the United States. With the inflow for Bitcoin ETFs, daily trading volumes have been on a significantly rising trend since late last year.
On Monday, the price of Bitcoin hit an all-time high in euros and pounds, and the market value in U.S. dollars surpassed the previous record of $1.303 trillion.
Bitcoin Bull Market
Market observers suggest that Bitcoin, the world’s largest digital asset with a market value of over $1 trillion, has entered a bull market driven by the application process of a bitcoin exchange-traded fund (ETF) by BlackRock, the world’s largest asset manager, in mid-2023.
This marks the third bull run for bitcoin and is guided by the market’s acceptance of bitcoin as a corporate-class asset through ETFs, along with macroeconomic factors favoring bitcoin.
Analyst Aurelie Barthere from Nansen noted in a report that the slowdown and cessation of Fed interest rate hikes likely contributed to Bitcoin hitting its bottom in 2022 and contributing to the rally after November 2023. Barthere also claimed that the technology sector reached new highs due to artificial intelligence stories. She emphasized that the expectation of Bitcoin Halving is seen as a tailwind for crypto prices, as historical data shows superior returns around the Halving period.
Barthere stated, “The strong performance of risk assets such as crypto, stocks, and credit suggests that financial conditions have probably loosened, especially since November of last year. Investors are genuinely optimistic about the macro outlook (recession is no longer a consensus), and the risk premium regarding uncertainty about a potential growth shock has decreased.”
Analysts indicate that the rally at the end of 2023 was marked by a lack of liquidity, with David Lawant, the head of research at FalconX, stating in October 2023 that the lack of willing sellers is a factor in driving up prices.