Bitcoin surged to over $68,000, inching closer to its all-time high as the new year unfolds. The leading cryptocurrency saw a remarkable 9% increase, reaching $68,635.20, with a peak at $68,848.62, the highest point since November 2021 when it hit a record high.
Ether, another prominent digital currency, also witnessed significant growth, jumping by more than 5% to $3,650.59. Both Bitcoin and Ether experienced their most substantial gains in almost a year last week, with Bitcoin climbing 21% and Ether 16%. However, the weekend saw a temporary pause in their upward trajectory as the market absorbed substantial outflows from the Grayscale Bitcoin Trust (GBTC).
The emergence of nine new Bitcoin exchange-traded funds (ETFs) has reshaped the market dynamics, leading to intensified trading activities during the typical trading week rather than weekends. Market analysts anticipate a potential replay of last week’s scenario when Bitcoin surged by $10,000 in just a few days.
While short-term projections suggest continued growth, some analysts foresee a possible cooling-off period in the coming weeks as profit margins near extreme levels. March could witness Bitcoin trading within a range due to the ongoing AI and blockchain technology-driven productivity surge, expected to endure.
Long-term investors remain optimistic about Bitcoin’s future, driven by rising demand through the new U.S. ETFs and anticipated supply constraints following the April halving event. This alignment is predicted to propel Bitcoin to new record highs, marking a significant milestone in the cryptocurrency market landscape.
