Bitcoin Price Soars to New All-Time High: What is Driving Today’s Surge in BTC Price?
Bitcoin (BTC) has continued to dominate the market as institutional investors show increased interest. The flagship cryptocurrency reached a new all-time high of approximately $73,650 during the mid-London session on Wednesday.
As a result, the global cryptocurrency market cap is on track to surpass the previous all-time high of over $3.1 trillion, which was reached during the peak of the 2021 bull run.
In the past 24 hours, the total crypto market cap has increased by around 2 percent, reaching approximately $2.9 trillion. However, the spike in volatility has led to over $324 million being liquidated from the entire crypto leverage trading market.
There are several reasons why the price of Bitcoin has been steadily increasing. Firstly, the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States has resulted in a significant influx of cash from large Wall Street firms. In fact, spot Bitcoin ETFs saw over $1 billion in cash inflows on Tuesday, with BlackRock’s IBIT alone receiving over $849 million.
Additionally, the recent revelation that the United States inflation is still a concern due to rising national debt has contributed to the increased volatility and upward trend in Bitcoin’s price.
Furthermore, the activation of Ethereum’s Dencun upgrade on the mainnet has sparked speculation in the crypto market.
Short-term expectations for Bitcoin suggest that its price against the US dollar could easily reach six figures once it clears all technical hurdles. While some analysts have warned of a potential 20-30 percent market correction, it appears that the Bitcoin bulls are currently in control.
Meanwhile, altcoins like Ethereum, BNB, and Avalanche (AVAX) are also experiencing significant growth and are catching up to Bitcoin’s bullish momentum.
In summary, Bitcoin’s price has reached new heights due to increased demand from institutional investors and various macroeconomic factors. The cryptocurrency market as a whole is on track to surpass previous records, and short-term expectations remain positive for Bitcoin and other altcoins.