- Bitcoin’s price surpassed $73,000 on Tuesday morning, setting a new all-time high, before quickly falling back down
- The price spikes and dips are driven by hype around the upcoming halving event, which cuts mining rewards in half every 4 years
- Other factors fueling the price rise include new Bitcoin ETFs bringing in billions of dollars and reduced Bitcoin supply after the halving
The price of Bitcoin continues to reach new highs ahead of the upcoming halving event. On Tuesday, it surpassed $73,000 for the first time before quickly dipping lower. These price spikes and dips have become common in recent weeks as excitement builds around the halving.
Bitcoin Hits New Peak Above $73K
On Tuesday morning, Bitcoin’s price rose to an unprecedented $73,027 on crypto exchange Coinbase. This beat the platform’s previous record high of $72,702 set on Monday. Last week, Bitcoin first surpassed its former all-time high when it jumped above $69,000.
After hitting this new peak, Bitcoin’s price soon dropped to $68,603 according to Coinbase data. The world’s largest cryptocurrency is known for its volatility, but it has since recovered to around $71,100 at the time of writing.
What’s Driving the Bitcoin Hype?
Bitcoin’s price has surged 47% over the past 30 days, per CoinGecko stats. A key factor fueling hype is demand for new spot Bitcoin ETFs approved in January. These funds enable exposure to Bitcoin prices without direct ownership. ETFs have been scooping up billions in BTC, driving up prices.
The upcoming halving is also generating excitement. This event happens about every four years and cuts mining rewards in half. That slows the new BTC supply, potentially benefiting prices. The next halving is projected for April 15.
Conclusion
Bitcoin’s price continues reaching new highs ahead of the halving, although steep dips often follow. Volatility is commonplace in crypto, but Bitcoin hype and anticipation of reduced mining rewards suggest its bull run may continue. The halving will be a major milestone to watch next month.
