After hitting a new all-time high surpassing $69,210 earlier this week, Bitcoin (BTC-USD) swiftly gave up a good chunk of these gains on Tuesday. However, as of Wednesday afternoon, Bitcoin is back trading above $66,000 per token, suggesting the token’s recent consolidation period may have been short-lived.
A downside move of more than 10% to less than $62,000 per token was scary for those who bought near the top. That said, Bitcoin is already up roughly 45% year-to-date, and much more off its lows. So, investors who have eased into positions during the previous crypto winter are doing quite well.
This rally in Bitcoin has also inspired rallies in other tokens. So, it’s not just Bitcoin crypto investors are focused on.
But Bitcoin is the main story. So, with that said, let’s dive into the bull thesis behind this token surging well past its all-time highs once again.
New High Record
Bitcoin surged to a record high of more than $69,000 per token on Tuesday, before a sharp selloff ensued. This peak marked a significant recovery for Bitcoin following the crash of 2022, which led to substantial losses and the downfall of major industry players like FTX. The sharp decline from Tuesday’s high highlighted the enduring volatility of the cryptocurrency market. It also suggested to many that the momentum supporting Bitcoin may continue for some time.
The frenzy surrounding Bitcoin is evident in the trading activity of ETFs launched in January, with spot ETFs amassing roughly $10 billion in just two months. Wall Street giants like BlackRock and Fidelity Investments dominate these investments. Major crypto platforms like Coinbase and Robinhood benefit from this surge, with Coinbase serving as custodian for several ETFs.
The question many investors now have after these impressive moves is whether highs above $70,000, 80,000 or even 100,000 are on the near-term horizon.
Key Catalysts That Could Drive More Price Growth
The recent surge in Bitcoin prices was propelled by U.S. spot bitcoin ETFs and anticipation of the late April “halving,” aimed at increasing scarcity of newly-minted tokens. Despite a minor correction, hitting a new record is significant for an industry recovering from reputational and regulatory challenges. Two years ago, crypto lenders’ bankruptcy and FTX’s collapse led to a 64% drop in bitcoin, challenging its legitimacy.
Alex Thorn, head of research at Galaxy Digital, highlighted persistent skepticism toward Bitcoin, despite its appeal as a decentralized, scarce digital currency. Other analysts have suggested that hitting all-time highs could reignite retail investor interest in cryptocurrencies, potentially driving more capital into altcoins.
What Now
In January, the U.S. Securities and Exchange Commission greenlit spot Bitcoin ETFs, attracting $7.35 billion from investors across 11 different funds. Some other institutes like Fidelity and Blackrock, also offer BTC ETFs. After surging at $41,000 in December 2023, BTC was at high peak for 19 months straight, which also led to the approval of the ETFs and its anticipated halving event.
Despite its recent surge, Bitcoin remains volatile. High prices don’t guarantee stability in the cryptocurrency market. Nonetheless, Bitcoin’s recovery relieves investors who suffered losses in 2022 due to exchange collapses.
It’s my view that the flood of capital we’re seeing into Bitcoin is likely to continue, at least until the halving is over. Once that catalyst is behind us, I think investors can take stock of where this token could be headed for the rest of the year, and that’s where price predictions will become more valuable.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
