Bitcoin, a cryptocurrency, broke records by climbing over $71,000, driven by growing interest in spot Bitcoin exchange-traded funds (ETFs). Will Bitcoin's rise continue? Here are the details.
Key Points
Bitcoin breaks new record, rising above $71,000 due to sustained interest in spot Bitcoin ETFs.
Global cryptocurrency market value exceeds $2.65 trillion, with Bitcoin's value increasing by over 2.3% in the last 24 hours.
Bitcoin's historical rise supported by expectations of central banks lowering interest rates for a more supportive monetary policy.
Upcoming Bitcoin halving in April could continue to drive the price momentum upward, while recent SEC approvals for Bitcoin ETFs hint at increased market activity.
Recently, the cryptocurrency Bitcoin set a new record by rising above $71,000, fueled by ongoing interest in spot Bitcoin exchange-traded funds (ETFs). According to data from analysis firm Coinmarketcap, the value of the global cryptocurrency market increased by 0.7% within 24 hours, surpassing $2.65 trillion. Bitcoin itself gained more than 2.3% in value over the last 24 hours.
Expectations that major central banks will begin to lower interest rates this year, shifting towards a more supportive monetary policy, are also bolstering Bitcoin's increase.
In November 2021, Bitcoin had tested the $69,000 level. However, as of today at 10:30 AM local time, it traded at $71,050, reaching its highest level in history. Bitcoin's rise, which gained about 157% in value last year, is notable.
Analysts point to the upcoming halving in April, which will reduce the new supply of Bitcoin, as a reason the cryptocurrency's price momentum might continue upward.
Ethereum, ranked second in market value, also gained 0.9% in the last 24 hours, reaching $3,986. Ethereum had broken records by surpassing $4,000 in 2021.
The U.S. Securities and Exchange Commission (SEC) approved 11 different spot Bitcoin ETF applications on January 11. These developments suggest that more activity is expected in the cryptocurrency market in the coming days.