Key Points
- Bitcoin's price has exceeded $71,200, marking a new all-time high.
- The upcoming Bitcoin halving and the introduction of spot Bitcoin ETFs in the US have contributed to this surge.
Bitcoin's price has recently soared past $71,200, a significant intraday increase of 2.4%. This is the second time in recent days that the price of Bitcoin has crossed the $70,000 threshold, with the first occurrence on March 8th.
After initially exceeding $70,000, the price quickly dropped back to the mid-$68,000 range. However, it has since rebounded, reaching $71,000 and setting a new all-time high.
Factors Driving Bitcoin's Rally
The latest surge in Bitcoin's value can be attributed to the introduction of spot Bitcoin ETFs in the United States. These ETFs have accumulated an additional 177,000 bitcoins since their inception, adding to the 621,000 bitcoins already held by Grayscale's Bitcoin Trust, now an ETF. This accounts for 4% of all circulating bitcoins.
In a little over a month, the amount of Bitcoin entering circulation is expected to decrease due to the upcoming Bitcoin halving. Currently projected for April 19, this event will see block rewards drop from 12.5 to 6.25 bitcoins, reducing the daily issuance of bitcoins by approximately 900, worth around $73 million.
Ethereum and Other Cryptocurrencies
Meanwhile, Ethereum, the largest cryptocurrency after Bitcoin, is trading just under $4,000, with a 1.2% increase, reaching approximately $3,990. The GM 30 Index, which represents a selection of the top 30 cryptocurrencies, has risen by 1.75% to 154.6 in the last 24 hours.
