- Bitcoin surpassed its previous record
- The cryptocurrency has been shaken in recent weeks
- Gold has also recently hit an all-time high.
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Bitcoin hit an all-time high on Tuesday, as investors continue to pour money into newly approved spot ETFs.
The cryptocurrency peaked at $69,202, surpassing its high of $68,999 it hit in November 2021, before falling to settle around the $66,000 mark on Tuesday afternoon.
Bitcoin has soared in recent weeks after the US regulator approved a series of bitcoin spot ETFs, which track the price of bitcoin.
To the moon: Bitcoin hit a record high of $69,000 on Tuesday
Over the past seven days, the cryptocurrency has gained around 18 percent and is up more than 50 percent over the course of the month.
It marks a significant turnaround for the cryptocurrency, which fell to a low of $16,000 following the FTX collapse in 2022.
In 2023, it languished between $20,000 and $30,000 before reaching $43,000 by the end of the year, in anticipation of the US regulator’s approval of Bitcoin spot ETFs, which track the price of bitcoin.
In late January, the Securities and Exchange Commission approved the launch of 11 Bitcoin ETFs, including funds from Wall Street giants BlackRock and Fidelity.
The SEC’s decision marks an important milestone for cryptocurrencies to gain widespread acceptance.
Previously, the only way to buy bitcoins was through an exchange, which can be an intimidating process and involves confusing technicalities like wallets and keys.
Simon Peters, market analyst at eToro, said: “The driving force behind the price movement remains bitcoin spot ETFs, which continue to acquire bitcoins in significant quantities.”
‘The daily amount acquired is currently 10 times the daily new issuance of bitcoins that enters circulation from the mining block rewards. Demand is rapidly outstripping supply.
Bitcoin is also benefiting from the prospect of the Federal Reserve cutting interest rates, often pushing investors to divert capital toward assets that have higher yields or are more volatile.
Gold has also benefited, rising to $2,134 an ounce in the spot market after steady gains in recent weeks.
This followed the release of US economic data last week that raised hopes that the Federal Reserve would deliver its first rate cut of the year in June.