Bitcoin hits $67,000 milestone 🚀🌟

Bitcoin Continues to Surge: What You Need to Know

Bitcoin is on the rise again, moving closer to its all-time high after a brief pause over the weekend. Here’s a breakdown of what’s happening in the crypto market:

Bitcoin and Ether Prices Soar

Bitcoin is up 7% at $67,379.86, nearing its peak.

It reached $67,567.98, the highest since November 2021.

Ether has also seen a 4% increase, trading at $3,607.49.

This marks a near January 2022 high for the cryptocurrency.

Crypto Market Momentum

Last week was one of the best for both bitcoin and ether in almost a year.

Bitcoin surged by about 21%, while ether saw a 16% increase.

The market paused over the weekend following significant outflows from the Grayscale Bitcoin Trust (GBTC).

This was balanced by inflows into new bitcoin exchange-traded funds.

New ETFs Impacting Market Trends

The introduction of nine new ETFs has shifted market dynamics.

Major price movements now occur during regular trading days instead of weekends.
This shift is attributed to increased demand from new spot ETFs.

Bitcoin currently sits just 3% below its all-time intraday high of $68,982.20.

Rise of Meme Coins and Crypto Equities

Meme coins like Dogecoin and Shiba Inu have surged recently.

Retail investors are re-entering the market, driving up trade volumes for these tokens.

Crypto equities such as Coinbase and Microstrategy have also experienced gains.
However, mining companies like Riot Platforms and Iris Energy have seen declines ahead of the upcoming halving event in April.

Long-Term Outlook for Bitcoin

Analysts anticipate continued short-term growth for bitcoin, with potential cooling in the coming weeks as profit margins reach extreme levels.
Despite short-term fluctuations, long-term investors remain optimistic about increasing demand and reduced supply post-halving driving bitcoin to new heights.

Crypto Market Influence from Stock Market

The tech-heavy Nasdaq Composite hitting an all-time high has positively impacted the crypto market.

Duane David, head of institutional research at Coinbase, highlights how AI- and blockchain-driven productivity is contributing to bitcoin’s growth amid stock market success.

Omar Marques | Lightrocket | Getty Images

Bitcoin jumped to start the week, edging even closer to its all-time high after the rally took a breather over the weekend.

The flagship cryptocurrency was last higher by 7% at $67,379.86, according to Coin Metrics. Earlier, it rose to as much as $67,567.98, its highest level since November 2021 when it reached its all-time high.Ether advanced 4%, trading near January 2022 highs at $3,607.49.

Both coins are coming off their best week in almost a year — bitcoin gained about 21% and ether 16% — but paused their run over the weekend as the market digested two days of steep outflows from Grayscale Bitcoin Trust (GBTC) that were offset by inflows into other “newborn” bitcoin exchange-traded funds.

With the birth of these nine new ETFs; big moves now tend to take place during normal trading weeks rather than on weekends,” said Antoni Trenchev; co-founder of crypto exchange Nexo.

“What we’re seeing today… might well be a rerun early last week when bitcoin surged $10,000 in a couple of days,” he added. “We’re in that sort of environment when a day or two of sideways consolidation can precede explosive price action thanks to voracious demand from these new spot ETFs.”

At $67,000; bitcoin sits about 3% off its intraday record of $68;982.20.

Bitcoin lifted other crypto tokens especially meme coins. Dogecoin surged 13%, while Shiba Inu coin rocketed 39%. Analysts point to them as evidence that retail investors who have been absent for much of recent crypto rallies are starting to return to crypto markets. Last week meme tokens’ weekly trade volume surged to their highest level since late 2021 according to crypto data provider Kaiko.

Some crypto equities rode the bitcoin wave such as Coinbase and Microstrategy which rose 7% and 20% respectively. Miners sat out however giving back earlier gains as short-term effect upcoming halving in April when mining companies’ revenue will be slashed weighs on investors.Riot Platforms; Iris Energy; CleanSpark each fell about 6%. Cipher Mining slid 4%; Marathon Digital dipped about 2%.

Some analysts have suggested that while bitcoin could keep rising in short term; it may cool in next few weeks as unrealized profit margins approach extreme levels.Bitcoin’s realized price is sitting at just about $42;700 according to CryptoQuant.

Nevertheless long-term investors are confident that combination increasing demand for bitcoin through new U.S ETFs and tighter supply expected after April halving event will push price bitcoin to new all-time high.

Crypto has also been getting slight bid from stock market where tech-heavy Nasdaq Composite reached all-time high on Friday becoming last major stock indexes hit record close this year.David Duong head institutional research at Coinbase said that although March could be month sideways grinding for bitcoin; cryptocurrency benefiting from AI-and blockchain technology-driven productivity boom he expects here stay.
Don’t miss these stories from CNBC PRO: