Bitcoin (BTC) achieved a historic milestone on March 11 when it reached a record-breaking all-time high of $71,415. Over the past week, the world’s first cryptocurrency has surged by more than 10%, and in the past month, it has seen a remarkable increase of 47%, according to data from CoinMarketCap. This new all-time high comes just three days after Ether (ETH) surpassed the $4,000 mark for the first time since December 2021.
Bitcoin’s climb to this new high is significant as it occurred 36 days before the highly anticipated Bitcoin halving event, which is set to take place on April 20. During this event, mining rewards will be reduced from 6.25 BTC ($418,800) to 3.125 BTC ($209,400).
On March 10, Bitcoin achieved its highest-ever weekly close at 68,955, shortly after surpassing its previous all-time high of $69,200 on March 5.
The surge in Bitcoin’s price can be attributed largely to increased institutional interest, which has been generated by the recent launch of spot Bitcoin exchange-traded funds (ETFs) in the United States. Since their launch, these ETFs have accumulated 4.06% of the current Bitcoin supply, totaling over $56.9 billion in on-chain holdings, as reported by Dune. If this trend continues, it is projected that ETFs will absorb 8.65% of the BTC supply annually.
Last week, the spot Bitcoin ETFs amassed a total of 33,000 BTC ($2.3 billion), including Grayscale’s GBTC fund, which experienced outflows of over 10,200 BTC, according to data from HODL15 Capital.
Bitwise, a digital asset manager, anticipates that more institutions representing “trillions of dollars in assets” will invest in spot Bitcoin ETFs by the end of June, as stated in an investment report sent to investors on March 9.
Despite the new highs, Bitcoin whales, referring to those who hold significant amounts of BTC, are continuing to hold onto their assets. As of March 9, there are 2,107 unique addresses holding at least 1,000 BTC. However, this is still lower than the record high of 2,489 addresses reached in February 2021, when Bitcoin was trading above $46,000.
In summary, Bitcoin has reached a new all-time high, setting a record of $71,415. The surge in its price can be attributed to increased institutional interest, driven by the launch of spot Bitcoin ETFs. Additionally, the upcoming Bitcoin halving event has contributed to the positive momentum. Despite these new highs, Bitcoin whales are holding onto their assets.