Bitcoin price hits a new all-time high

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Bitcoin price hit a new all-time high above $69,200, and analysts believe BTC’s rally has a ways to go.

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Bitcoin price hits a new all-time high

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Bitcoin price reached a new all-time high above $69,200 on March 5 after gaining 5% in the previous 24 hours.

The world’s first cryptocurrency rallied over 21% during the past week to shatter the previous all-time high price of $68,990, which was recorded on the Coinbase exchange on Nov. 10, 2021.

The record high follows large inflows from the new spot Bitcoin (BTC) exchange-traded funds (ETFs) in the United States. 

The ETFs have introduced passive, price-agnostic demand for Bitcoin, which has fortified its status as a store of value and led to its price appreciation, according to a research report by Bitfinex analysts shared with Cointelegraph.

“Our analysis forecasts a conservative price objective of $100,000-$120,000 to be achieved by Q4 2024, and the cycle peak to be achieved sometime in 2025 in terms of total crypto market capitalization.”

According to the analysts, the spot ETFs could dampen Bitcoin’s downside volatility after reaching new cycle tops:

“The fact we now have ETFs potentially means that any decline following the top of the current cycle could be less drastic than previous downturns. We saw a similar stable trajectory in price after a huge increase following the launch of gold ETFs.”

Bitcoin ETFs have been an important element of the current rally. By Feb. 15, the Bitcoin ETFs accounted for about 75% of new investment in the world’s largest cryptocurrency as it surpassed the $50,000 mark, according to CryptoQuant research.

Bitcoin ETFs could overtake gold ETFs in assets under management in the next two years, according to a Feb. 26 research report shared by senior Bloomberg analyst Eric Balchunas and associate analyst Andre Yapp.

Despite the new all-time high, Bitcoin could experience significant volatility after the upcoming halving, according to Paul Eisma, head of options trading at XBTO Futures. Eisma told Cointelegraph:

“The crypto ecosystem, for the first time, will have simultaneous pressure from the halving’s deflationary supply impact as well as the still ongoing demand shock from the ETFs. […] The options market December 2024 at-the-money forward break-evens are currently pricing in a range of $55,000–$85,000, with implied volatility around 65%.”

Related: Crypto’s next leap: Ether ETFs through Keyrock’s kaleidoscope

This is a developing story, and further information will be added as it becomes available.

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