Bitcoin surpassed the $69,000 milestone for the first time in history as investors poured money into newly created exchange-traded crypto funds and bet that global interest rates would fall this year.
The world’s largest cryptocurrency reached a high of $69,202 on Tuesday, surpassing its all-time record of $68,999.99 set in November 2021, but as of 10:40 a.m. ET, it was around $67,071 per Bitcoin. It retreated to the dollar.
Bitcoin’s impressive performance also boosted other small-cap cryptocurrencies, including Ethereum, which was up more than 4% as of 11:40 a.m. ET on Tuesday.
Ethereum was trading above $3,700 on Tuesday. Since the beginning of the year, the digital coin has appreciated over 135%.
Investor interest has increased since the Securities and Exchange Commission approved 11 spot Bitcoin ETFs in late January.
“While supply is limited, the demand unleashed by U.S. spot ETFs appears to be relentless,” Justin Danesan, head of Asia partnerships at digital asset market maker Keylock, told Reuters.
Bitcoin’s meteoric rise of almost 160% since October, which was 44% in February alone, stands in stark contrast to 2022. 2022 saw the market enter an 18-month crypto winter, plagued by a series of high-profile corporate bankruptcies and bankruptcies. scandal.
In addition to demand from a broader investor base, Bitcoin and cryptocurrencies in general are being boosted by the prospect of interest rate cuts by the Federal Reserve, which in many cases is pushing investors to invest in higher-yielding or more volatile assets. Funds are now being allocated to.
Social media platform Reddit, which filed to list its stock on the New York Stock Exchange on February 22, announced it has invested some of its surplus cash in Bitcoin, Ether and Matic, the Polygon Network’s native token. A form of payment for the sale of certain virtual goods.
with post wire
