April 19, 2024
Bitcoin price today

Bitcoin Inches Closer to All-Time High, Surpassing $68,000

In a remarkable start to the week, Bitcoin has surged, edging even closer to its all-time high after a brief pause over the weekend. According to Coin Metrics, the flagship cryptocurrency recorded a 9% increase, reaching $68,635.20, with a peak of $68,848.62 — its highest level since November 2021.

Ether, the second-largest cryptocurrency, also experienced a boost, advancing more than 5% to $3,650.59. This comes after both coins had their best week in almost a year, with Bitcoin gaining around 21% and Ether 16%.

The weekend slowdown was attributed to two days of significant outflows from the Grayscale Bitcoin Trust (GBTC), which were counteracted by inflows into new Bitcoin exchange-traded funds (ETFs). Antoni Trenchev, co-founder of crypto exchange Nexo, noted that the emergence of these ETFs has shifted major market moves to occur during the trading week.

Analysts are now speculating that the current market activity could mirror the explosive price action witnessed last week when Bitcoin surged by $10,000 in just a couple of days. This trend is fueled by the voracious demand for the new spot ETFs.

The rally in Bitcoin has also lifted other cryptocurrencies, especially meme coins. Dogecoin saw a surge of 32%, while Shiba Inu coin skyrocketed by an impressive 95%. This surge is seen as evidence that retail investors, who had been relatively absent during the recent crypto rally, are returning to the market.

Despite the positive momentum, some experts caution that Bitcoin’s short-term rise might cool in the coming weeks as unrealized profit margins approach extreme levels. The realized price of Bitcoin, currently around $42,700 according to CryptoQuant, suggests potential volatility in the short term.

However, long-term investors remain optimistic, expecting increasing demand through the new U.S. ETFs and a tightening supply post the April halving event to push Bitcoin to a new all-time high.

Crypto’s connection with the stock market is also evident, as the tech-heavy Nasdaq Composite reached an all-time high on Friday. David Duong, head of institutional research at Coinbase, believes that Bitcoin is benefiting from an AI- and blockchain technology-driven productivity boom, anticipating a sustained positive trajectory despite potential short-term fluctuations.

Image by Satheesh Sankaran from Pixabay

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