Bitcoin breaks $69,000, peaks by more than 50%!

The price of Bitcoin broke the mark established by the original cryptocurrency during its last bull run in November 2021, as it crossed $69,000 on Tuesday morning but retreated soon enough. 

This year, Bitcoin has increased by more than 50%. It peaked at $69,202 before falling below $68,000. Its market capitalization has increased by more than 200% in the last year, reaching over $1.3 trillion for the second time. 

The notable rise in value is ascribed to the issuance of spot ETFs by well-known financial organizations such as Fidelity and BlackRock, which make it simpler for individual investors to access the market. ETF inflows hit a record $760 million last week, bringing the total assets under management to almost $50 billion in just two months.

Notably, taking in over 79% of inflows into Newborn Nine ETFs, are BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC). IBIT exceeded $10 billion.

Since its launch in the US, institutional capital inflows have fueled the price of Bitcoin to a new all-time high. However, crypto influencer Capo forecasts a $45,000 drop in the price of bitcoin. The halving event of Bitcoin is due in 42 days, and historically, this has caused the price of Bitcoin to crash sharply in the lead-up to the halving.

A dormant whale deposited $1,000 BTC ($67.1M) at $67,116 to Coinbase, according to on-chain reports. This transaction may have contributed to the current market fall. 

Though many have predicted where they believe Bitcoin will go in the future, very few are as bullish as Cathie Wood, CEO of Ark Invest. In her worst-case scenario for 2030, the price of Bitcoin would be $600,000, over ten times higher than it is today. According to her bull argument, Bitcoin might hit $1.5 million by 2030. The market capitalization of Bitcoin would exceed $30 trillion if its price were to hit $1.5 million.

Her initial bull case projection was $1 million, but among other things, the approval of the Bitcoin spot ETFs caused her to raise it to $1.5 million. Wood specifically mentioned an increase in long-term and institutional investors, as well as an increase in holders generally, a rising hash rate, and ETFs.

The price of Bitcoin crossed over $65,000 for the first time since November 2021. Bitcoin’s price surge is ascribed by analysts to the demand for BTC from US-listed exchange-traded funds (ETFs), which commenced trading on January 11 with SEC approval. 

The price of bitcoin has increased by over 190% over the last 12 months and by over 55% year to date. Record institutional investment is set to be driving positive sentiment.

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

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