Bitcoin hits new all-time high above $70,000

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Bitcoin, the world’s most prominent cryptocurrency, achieved a new all-time high on Friday, with its value exceeding $70,000, according to data from Coinbase. This milestone comes after a significant recovery from a low of around $16,000 in November 2022, following the collapse of the FTX exchange. The recent surge is attributed to the excitement over January’s approval of spot Bitcoin exchange-traded funds (ETFs) and the anticipation of the upcoming “halving” event next month, which is expected to impact Bitcoin’s price by reducing the reward given to miners.

The cryptocurrency’s latest peak represents a more than 60% increase over the past 30 days and a doubling in price since October last year, signaling a strong rebound from a prolonged bear cycle.

Bitcoin’s new record high of over $70,000 marks a significant moment in the cryptocurrency’s volatile history, with the price quickly retracting to $68,172 shortly after reaching the peak. The digital currency has experienced a remarkable month, with its value soaring by more than 60% in the last 30 days and doubling since October. This surge follows a challenging period for Bitcoin, which saw its price plummet to around $16,000 in November 2022 after the FTX exchange collapse. Analysts attribute the recent price increase to the excitement surrounding the approval of spot Bitcoin ETFs in January, which have seen billions in daily trading volume, and the upcoming “halving” event that will reduce the mining reward by half, potentially influencing the supply and price of Bitcoin.

Coinbase’s daily trading volumes have been reported between $3 billion and $5 billion, with a bank analysis suggesting that increased retail participation is contributing to this activity, benefiting Coinbase’s take rates. Meanwhile, technical, on-chain, and fundamental indicators suggest that Bitcoin’s price could rally toward or above $90,000 in the coming weeks. A bull pennant pattern, increased ETF inflows, and historical price patterns all point to the potential for further gains, with analysts predicting a target of around $92,500. The ETF inflows have more than doubled since their launch in January, indicating growing investor interest. The upcoming halving event, which has historically affected Bitcoin’s price, adds to the positive outlook for the cryptocurrency’s near future.

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