Bitcoin Hits All-Time High, Nears $69K

Bitcoin, the world’s largest cryptocurrency, reached an unprecedented peak on Tuesday as it soared to $68,978, surpassing its previous record of $68,789 set in November 2021. This surge comes amidst a renewed wave of excitement surrounding the digital asset, reminiscent of the 2021 boom.

The current rally is fuelled by the introduction of spot bitcoin exchange-traded funds (ETFs) in January, providing everyday investors with broader exposure to Bitcoin. The overwhelming demand for these ETFs has exceeded expectations, with industry experts anticipating a record-breaking year for the cryptocurrency.

According to analysts, the increased demand from ETFs has led to a supply-demand imbalance, with more bitcoins being bought daily than are being created. This imbalance is expected to intensify with the upcoming “halving,” which will further reduce the daily supply of new coins.

Institutional investors are also driving the market frenzy, with major firms like BlackRock and Fidelity Investments pouring billions into crypto trading venues. However, concerns have arisen regarding potential supply constraints, including the US government’s stash of seized bitcoins, which could be distributed or sold in the future.

Despite these factors, many money managers remain bullish on Bitcoin’s future, with price targets ranging from $160,000 to $450,000 per coin. The current rally is also fuelled by psychological factors such as the fear of missing out, as interest in Bitcoin among the general population remains below previous peak levels.

As the cryptocurrency market continues to evolve, investors are closely monitoring developments and adjusting their strategies to capitalise on the growing opportunities presented by Bitcoin and other digital assets.