Key Points
- Bitcoin (BTC) is nearing a new all-time high price, trading at $68,300 with a 7% increase in the last 24 hours.
- Historically, Bitcoin has shown a pattern of doubling its price after reaching a new all-time high.
Bitcoin enthusiasts are buzzing as the cryptocurrency’s price is on the brink of reaching a new all-time high of $69,000. At present, Bitcoin’s trading value is $68,300, showing a 7% increase in the last 24 hours.
Bitcoin’s Historical Performance
The conversation among investors and enthusiasts is largely focused on Bitcoin’s behavior after it achieves a new all-time high. In March 2013, Bitcoin saw a significant rally, with a 158% increase from $34 to $88, including a 10-day span where the price doubled.
A similar pattern was observed in November 2013 and December 2020. In the latter instance, Bitcoin broke its previous high of $19,665 on Dec. 16, 2020, and then doubled just 23 days later on Jan. 8. It continued to rally up to $63,580 by April 14, 2021 — marking a 222% or three-fold increase in 120 days.
Anticipation of Bitcoin Halving
The price surge in late 2020 was partially due to the halving event that took place in May 2020. Interestingly, Bitcoin is nearing its all-time high more than a month before the next scheduled halving in 2024. Some experts predict a significant price increase a few months after the upcoming halving.
Bitcoin’s score on the Crypto Fear & Greed Index has increased to 90 out of 100 — its highest score since February 2021. This surge in interest is also reflected in a resurgence of “Bitcoin” Google searches over the past two weeks. The index is based on a mix of data sources including volatility, market momentum and volume, social media, Bitcoin dominance, and Google Trend data.
Bitcoin Demand and ETFs
Unlike previous bull markets, Bitcoin demand is now also being driven by the recently launched spot Bitcoin exchange-traded funds (ETFs) in the United States. The Bitcoin ETFs have recorded $7.35 billion in net inflows since Jan. 11. BlackRock’s iShares Bitcoin Trust (IBIT) has been the most successful, reaching the $10 billion asset milestone faster than any ETF in United States history.
Ric Delman, a U.S. investor, predicts Bitcoin ETF flows will reach at least $150 billion by the end of 2025. This prediction is based on a recent survey revealing that 77% of independent financial advisors want to add Bitcoin to their existing portfolios.
Matt Hougan, Bitwise’s chief investment officer, suggests there could be an even bigger wave of institutional capital once the major wirehouses start offering Bitcoin ETF trades. The ratio of Bitcoin bought by ETF issuers relative to the Bitcoin mined can reach upward of 10, suggesting that Bitcoin demand is exceeding supply.
Currently, Bitcoin is the ninth largest asset by market cap and is only 0.9% away from surpassing Silver, which has a market cap of $1.356 trillion. In terms of state-issued currencies, Bitcoin has recently surpassed the Swiss franc in 13th position.
