Mar 12, 2024
The image shows an artist's imagination of a bitcoin in front of a trading screen. — Freepik
Bitcoin's value on Tuesday rose to a historic high, crossing the $72,000 mark for the first, demonstrating exceptional performance with no possibilities of deceleration in sight.
The biggest cryptocurrency during its last trading session was recorded at $72,649, up 4.4% following its highest reach of the day to $72,739.
The skyrocketing spike being observed in the value of the most-traded cryptocurrency is led by mounting inflows into the recently approved exchange-traded funds (ETFs) listed in the US, coupled with expectations of the interest rate cuts by the Federal Reserve.
Read more: Bitcoin price reaches historic high, followed by sudden drop
"The recent surge in bitcoin's value ... underscores the remarkable strength and resilience of the leading cryptocurrency. This achievement not only marks a significant milestone but also reflects the continued confidence and demand in the market," Bitfinex analysts said in a research note.
Data revealed by the LSEG shows while inflows into the 10 largest US spot bitcoin exchange-traded funds dropped to a two-week low in the week ending on March 8, 2024, it still touched the $2 billion.
"Bitcoin has started the week with a surge, dragging the rest of the cryptocurrency space higher with it," DailyFX strategist Nick Cawley said.
While it was previously limited to 21 million tokens, the supply of bitcoin is set to be contracted further amid the halving event slated to kick off next month.
The halving event takes place every four years, aimed at bringing down the rate at which bitcoin is released and the reward for crypto miners due to their inherent potential to propel the price of bitcoin.
