- Bitcoin’s price has surpassed $70,000 for the first time since June, riding on the popularity of newly approved Bitcoin exchange-traded funds (ETFs).
- The surge comes as investors pour billions into the new Bitcoin ETFs, providing a regulated path for institutional investors to gain exposure to cryptocurrency.
- Bitcoin hit an all-time high of $73,737 in March, just two months after the Bitcoin ETFs were approved, but then struggled due to geopolitical tensions and interest rate uncertainty before rebounding recently.
Bitcoin has seen a rollercoaster ride in 2024, with its price fluctuating wildly. This article explores the latest price movements and what might be driving them.
Bitcoin Smashes Past $70,000
Bitcoin’s price has blasted beyond $70,000 for the first time since June. The largest crypto by market capitalization is up 3% on the day to $70,100 according to CoinGecko data.
The rise comes as investors turn to newly-approved exchange-traded funds (ETFs), providing a regulated way for institutional investors to gain exposure to crypto.
Previous All-Time High
Bitcoin hit a new all-time high of $73,737 in March, just two months after the Bitcoin ETFs were approved.
The asset then struggled following geopolitical tensions in the Middle East and uncertainty over what the US Federal Reserve would do regarding historically high interest rates.
Federal Reserve Slashes Rates
But the central bank decided to slash rates last month and investors have again gained an appetite for risk-on assets like Bitcoin. Such investments do better in a low-interest rate environment because it is cheaper to borrow money.
Ethereum and Dogecoin Also Surging
It’s not just Bitcoin that’s on the up. Ethereum’s price has also jumped today and now stands at $1,901. And Dogecoin, which recently made a comeback following comments from Elon Musk, is up over 13% to $0.016.
Bitcoin ETFs Wildly Popular
The Bitcoin ETFs approved in January have been wildly popular. Data shows total net inflows for Bitcoin ETFs have hit $20.2 billion, even accounting for the $20 billion that has fled from Grayscale’s fund.
Investors have put billions into the products, with BlackRock’s iShares Bitcoin Trust being the most successful so far. The ETFs provide regulated exposure to crypto for institutional investors.
Buzz Ahead of US Election
With the US presidential election approaching, Bitcoin investors’ bullishness continues. Last week, nearly $1 billion entered Bitcoin ETFs, giving investors exposure to the biggest cryptocurrency.
Conclusion
Bitcoin is on a tear once again, smashing through $70,000. With investors piling into regulated ETF products and a buzz building ahead of the US election, Bitcoin could be heading for another all-time high. But it still faces macroeconomic headwinds that could send its price tumbling again.
