Bitcoin’s price surged to a historic high of over $69,200 on March 5, marking a 5% increase in the past 24 hours. This milestone comes after a remarkable 21% rally in the past week, surpassing the previous record of $68,990 set on Coinbase in November 2021.
The surge in price can be attributed to the influx of investments from new spot Bitcoin exchange-traded funds (ETFs) in the United States. These ETFs have introduced a passive demand for Bitcoin, regardless of its price, strengthening its reputation as a store of value and driving its price appreciation. Bitfinex analysts, in their research report shared with Cointelegraph, have highlighted how these ETFs could potentially mitigate Bitcoin’s downside volatility once it reaches new cycle highs.
According to CryptoQuant research, by February 15, Bitcoin ETFs accounted for approximately 75% of new investments in the world’s largest cryptocurrency, as it surpassed the $50,000 mark. In fact, a research report by senior Bloomberg analyst Eric Balchunas and associate analyst Andre Yapp suggests that Bitcoin ETFs could overtake gold ETFs in terms of assets under management within the next two years.
However, despite this remarkable achievement, Bitcoin could face significant volatility following the upcoming halving, as noted by Paul Eisma, head of options trading at XBTO Futures.
As this story continues to develop, additional information will be provided as it becomes available.