Bitcoin Makes History: Soars Beyond $70,000, Dragging Other Altcoins Along

The world’s top cryptocurrency, Bitcoin, made history by soaring beyond $70,000 for the first time ever. BTC hit a new all-time high of $71,415 early today. This remarkable milestone affected Ethereum, the second-largest cryptocurrency, and it breached the $4,000 level for the first time since May 2021. 

As Bitcoin leads the charge, it’s pulling many other alternative cryptocurrencies or “altcoins” higher in its wake. But what exactly is causing this latest crypto boom? Read on to find out.

Institutional FOMO Fueling Bitcoin’s Relentless Rally

Bitcoin’s incredible rally that pushed it beyond $70,000 for the first time can be largely attributed to one major driving force, the launch of new spot Bitcoin exchange-traded funds (ETFs) in the United States. 

These ETFs have proven to be a game-changer, igniting fresh institutional demand.

Since the launch, the asset class has accumulated over 4% of Bitcoin’s total circulating supply worth billions of dollars.

Source: Dune’s Data

Data shows the ETFs amassed over 33,000 BTC, approximately $2.3 billion, last week alone through inflows. Further, analysts well-versed in these ETFs think that they might get around 8.65% of all the Bitcoin that exists in a year. 

Clearly, institutional investment is pouring into these new Bitcoin ETF products as never seen before. Additionally, analysts in big companies like Bitwise think that even more massive investment funds worth “trillions of dollars” will start buying into spot Bitcoin ETFs by Q2 2024.

I think those flows will accelerate throughout the year as these investors become more comfortable with the new products,

Bitwise added.

Who’s Buying Bitcoin ETFs (As Far As We Know)

An excerpt from Bitwise CIO @Matt_Hougan's weekly memo to investment professionals.

Bitcoin ETFs have attracted more than $7.5 billion in net new assets since launching in the U.S. on January 11, making many of them among the most… pic.twitter.com/jyIZHUsbn6

— Bitwise (@BitwiseInvest) March 8, 2024

These large investment funds entering the Bitcoin market are taking a lot of BTC supply, which could make it scarcer. Adding to the excitement already, data indicates Bitcoin whales with at least 1,000 BTC have continued accumulating and holding onto their coins rather than selling.

Source: LookIntoBitcoin 

The number of these mega whale addresses recently climbed to over 2,100. So, the launch of spot Bitcoin ETFs has opened the floodgates to institutional investment for the first time. With more money on the way, Bitcoin’s record-breaking bull run may just be getting started.

Bitcoin Shatters Records Ahead of Halving Event

As mentioned earlier, Bitcoin continues to shatter records, reaching a staggering new all-time high of $71,415 on March 11. This milestone came after Bitcoin’s price surged 2.62% in just 24 hours and over 10% in the past week alone.

According to data from CoinMarketCap, the world’s first and largest cryptocurrency has been on an uptrend, rallying 47% over the last month. 

Source: CoinMarketCap

Bitcoin’s momentum shows no signs of slowing down, with these new highs arriving just 36 days before the highly anticipated Bitcoin halving event on April 20. Notably, during the halving, miners’ rewards for validating transactions will be cut in half from 6.25 BTC ($418,800) to only 3.125 BTC ($209,400). 

Historically, Bitcoin’s value has always increased during this halving event. This happens because investors buy Bitcoin beforehand, expecting fewer coins to be available later. As such, the market anticipates more gains for BTC.