Bitcoin soars towards all-time highs, breaking the $66,000 barrier by Investing.com

Bitcoin soars towards all-time highs, breaking the ,000 barrier by Investing.com

2024-03-04 15:51:00

© Reuters

Investing.com – A new bull rally began with the start of this week’s trading, approaching an all-time high of $69,000, following the rise stopped over the weekend.

The main cryptocurrency has risen in the last few moments by 6% in the last 24 hours at $66,288. Earlier in today’s session, the price rose to as high as $66,479, its highest level since November 2021.

Meanwhile, the second-largest cryptocurrency by market cap, Ethereum, rose regarding 3.5% to $3,548.

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Both currencies are coming off their best week in almost a year (with Bitcoin gaining regarding 21% and Ethereum 16%) but paused their rise over the weekend as the market absorbed two days of sharp outflows from the Grayscale Bitcoin ETF. Which was offset by inflows into other Bitcoin ETFs.

“With the launch of the nine new ETFs, the big moves now tend to happen during the regular trading week rather than weekends,” said Anthony Trenchev, co-founder of Nexo. Adding, “What we see today… may be a repeat of what happened early last week when Bitcoin rose by $10,000 in the space of two days thanks to voracious demand for these new spot ETFs.”

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Investors were very keen to see Bitcoin approaching all-time highs. It is now trading at $66,000, roughly 4% of its November 2021 record of $68,982.20.

Some analysts have suggested that although it may continue to rise in the short-term, Bitcoin may cool off in the next few weeks, as unrealized profit margins approach extreme levels. The real price of Bitcoin is only regarding $42,700, according to CryptoQuant.

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However, long-term investors are confident that the combination of increased demand for Bitcoin through new US exchange-traded funds and an expected reduced supply following the April halving event, will push the price of Bitcoin to a new all-time high.

Bitcoin has ticked other tokens higher, especially meme coins. The (-) coin jumped by 20% in the last 24 hours, while the (-Shiba Inu) coin rose by 32%. Analysts point to their performance as evidence that retail investors, who were absent when cryptocurrencies rose recently, are starting to return to the cryptocurrency market.

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