Bitcoin Hits Record High: Surpasses $69,000 Amidst Strong Demand and ETF Approval

Bitcoin just hit a record high, soaring above $69,000 for the first time since November 2021. This surge comes as demand for the cryptocurrency has spiked in recent weeks, following the approval of spot bitcoin ETFs in the U.S. and the upcoming bitcoin halving event in late April.

In March alone, Bitcoin has jumped by over 60%, and it’s up about 205% for the year, according to CoinMarketCap. The total value of all cryptocurrencies combined has also risen by 18% to $2.55 trillion, with Bitcoin making up over half of that.

The timing of this new high is significant, as it comes just before the scheduled bitcoin halving event in mid-April. This event, which occurs roughly every four years, reduces the rate at which new bitcoins are created. It’s designed to control the supply of bitcoin over time, with the ultimate goal of reaching a total supply of 21 million bitcoins. The last halving isn’t expected to happen for more than a century.

Historically, bitcoin halving have led to increased interest in the cryptocurrency, as demand typically outpaces supply, leading to price increases in the months following the event.

The recent surge in price is also attributed to the approval of 11 spot bitcoin ETFs by the U.S. Securities and Exchange Commission in January. These ETFs have attracted both institutional and retail investors, with institutional demand exceeding initial expectations. The total market capitalization of spot bitcoin ETFs now stands at $53.74 billion, with a 24-hour trading volume of $1.81 billion.

Additionally, data shows that ETFs are purchasing more bitcoins than miners are producing, indicating significant demand for the cryptocurrency among investors.