Bitcoin continues its record-breaking run, reaching an all-time high of almost $72,881 on Monday and trading at $72,220 on Tuesday morning. The surge in price is fueled by the influx of capital into crypto products and the upcoming reduction in Bitcoin’s supply growth.
A report from CoinShares International Ltd. revealed that a record $2.7 billion flowed into crypto assets last week, with the majority going to Bitcoin. The success of spot Bitcoin exchange-traded funds in the US, launched on Jan. 11 by BlackRock Inc. and Fidelity Investments, has also contributed to the momentum. These ETFs have attracted a net inflow of about $9.5 billion so far.
Institutional adoption of Bitcoin is on the rise in the US, with Ophelia Snyder, 21Shares’ co-founder and president, noting that not all institutions have access to it yet. Analysts are predicting further gains, with some suggesting that Bitcoin could push towards $80,000 in the coming months.
The derivatives sector is also seeing increased interest, with outstanding contracts at CME Group’s Bitcoin futures market reaching a new peak. The surge in Bitcoin’s price is creating approximately 1,500 new “millionaire wallets” daily, according to Kaiko Research.
Next month, Bitcoin will undergo a halving event, cutting the supply of new Bitcoin in half. This, combined with demand from ETFs and expectations of looser monetary policy, is fueling a bullish sentiment in the crypto market. Investors are optimistic, putting aside memories of the 2022 bear market.
Overall, Bitcoin’s record-breaking run is showing no signs of slowing down, with experts and investors alike keeping a close eye on the digital token’s performance.