Bitcoin price hits new record at over $69,000 on Coinbase

Bitcoin price hits new record at over $69,000 on Coinbase

Bitcoin price hit new all-time highs, surpassing $69,000 on Coinbase before falling back to around $65,000. This rapid decline from the highs is not surprising as many investors and traders may have wanted to take profits. The recent rise in Bitcoin price has been fueled by strong demand for spot Bitcoin ETFs, with net inflows into these ETFs hitting a new record high on Monday. Lyn Alden reported that around $8 billion in cumulative net inflows have flowed into the new ETFs since January, increasing Bitcoin's market cap by $300 billion. This sudden high demand for ETFs comes just before an impending Bitcoin supply shock. Bitcoin’s so-called April “halving” will cause the rate of new BTC token issuance to miners to drop by 50%. This significantly reduces the selling pressure from Bitcoin miners. In addition to this development, global liquidity conditions also weigh in favor of the crypto sector in the coming years, as the Federal Reserve (Fed) and most other major central banks are expected to ease their monetary policies. As a result, investors and swing traders could use the recent drop in Bitcoin price from all-time highs as a good opportunity to buy. It is speculated that a price of $100,000 could be reached this month.

Possible impact and context

The rise in Bitcoin price to new all-time highs and strong demand for spot Bitcoin ETFs indicate growing acceptance and demand for cryptocurrencies. Bitcoin has experienced a remarkable increase in value in recent years and is increasingly being viewed as a possible hedge against inflation. The introduction of ETFs has allowed investors to invest in Bitcoin easily and efficiently, which has contributed to increased demand and a rise in price. The upcoming Bitcoin supply shock, where the rate of new BTC token issuance will be halved, could also lead to a supply shortage and further support price appreciation. Additionally, global liquidity conditions are favorable as central banks ease monetary policy, increasing the incentive for investors to invest in riskier asset classes such as cryptocurrencies.

Historically, Bitcoin has often experienced rapid rallies after breaking through previous all-time highs. This was seen, for example, when Bitcoin surpassed the December 2017 highs in December 2020, reaching almost $65,000 within a few months. A similar development was also observed in 2017 when Bitcoin surpassed the 2013 highs. Therefore, there are indications that a fresh break from all-time highs could lead to an accelerated rally. Given the positive fundamentals and supporting factors such as ETF demand, the impending supply decline and improved liquidity, Bitcoin could have potential to reach $100,000 this month.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Trading cryptocurrencies involves a high level of risk and you could lose all of your capital.