Bitcoin price soared to a historic peak exceeding $69,200 on March 5, following a 5% increase in the previous 24 hours. Over the past week, the world’s first cryptocurrency surged by over 21%, surpassing its previous all-time high of $68,990 set on the Coinbase exchange on November 10, 2021. This remarkable achievement was attributed to significant inflows from new spot Bitcoin exchange-traded funds (ETFs) in the United States.
The introduction of these ETFs has generated passive demand for Bitcoin, which transcends its price and reinforces its status as a store of value. Bitfinex analysts, in a research report shared with Cointelegraph, emphasized that this has contributed to the appreciation of Bitcoin’s price. Furthermore, these spot ETFs are expected to mitigate Bitcoin’s downside volatility as it reaches new cycle peaks.
Research from CryptoQuant reveals that Bitcoin ETFs accounted for approximately 75% of new investments in the world’s largest cryptocurrency, once it surpassed the $50,000 mark by February 15. In fact, senior Bloomberg analyst Eric Balchunas and associate analyst Andre Yapp predict that Bitcoin ETFs could surpass gold ETFs in terms of assets under management within the next two years.
However, despite this remarkable achievement, Bitcoin may face significant volatility following the upcoming halving, according to Paul Eisma, the head of options trading at XBTO Futures. Eisma believes that further developments in this story will unfold, and additional information will be provided as it becomes available.