Bitcoin Price Reaches New All-Time High: Unveiling the Factors Behind Today’s Surge

Bitcoin has achieved a remarkable milestone driven by the growing interest of institutional investors. The cryptocurrency surged to a new all-time high of approximately $73,650 during the mid-London session on Wednesday.

The global cryptocurrency market cap is also nearing its previous all-time high of over $3.1 trillion, which was reached during the peak of the bull market in 2021. Over the past 24 hours, the total crypto market cap has increased by around 2 percent, reaching nearly $2.9 trillion. However, this surge in value has also led to over $324 million in liquidations in crypto leverage trading due to increased volatility.

Several macroeconomic factors and increased participation from institutional investors have contributed to the recent surge in crypto prices, particularly Bitcoin. The approval of spot Bitcoin exchange-traded funds (ETFs) in the United States has attracted significant investments from major Wall Street firms. In fact, on Tuesday alone, spot Bitcoin ETFs received cash inflows of over $1 billion, with BlackRock’s IBIT receiving more than $849 million.

Bitcoin’s volatility has increased as it approaches its new all-time high, following news of sustained inflation in the United States and concerns over rising national debt. Furthermore, excitement in the crypto market has grown with the activation of Ethereum’s Dencun upgrade on the mainnet.

Looking ahead, Bitcoin’s upward trajectory against the US dollar suggests the possibility of reaching a six-figure value after overcoming recent technical challenges. While some analysts, such as Michaël van de Poppe, caution against a potential 20-30 percent market correction, overall sentiment favors the continued dominance of Bitcoin bulls.

The altcoin market is also experiencing growth alongside Bitcoin, with Ethereum, Binance Coin (BNB), and Avalanche (AVAX) leading the way in the ongoing bullish trend.