Bitcoin this week finally managed to surpass its record set on November 10, 2021, even briefly crossing $70,000. A new record which could well be just the start of a new cycle.
It’s the cryptocurrency trading platforms that must be rubbing their hands. Because after a year 2023 which already marked the return of cryptos, the year 2024 promises to be even more euphoric for this market. And for good reason, Bitcoin has never been entitled to such a high price in its entire history. A fantastic comeback which could well continue throughout this year.
Bitcoin has never been higher
This is one of the big news of the week. After a rally of just over a year, Bitcoin finally surpassed its previous record, the All Time High (ATH) recorded during the 2020-2021 bull cycle. It has thus exceeded $69,000 several times this week, and even, more briefly, made inroads beyond $70,000.
This feat surprised many regulars in the crypto world. It seemed understood that Bitcoin would only benefit from such a rise after the halving, i.e. the moment when Bitcoin miners see their reward after the creation of a block reduced by half – which automatically makes the supply scarce. .
The level of global capitalization of cryptos always improves
But if Bitcoin impresses, it is in fact the entire ecosystem of cryptocurrencies which has finally recovered from the terrible year 2022, marked first by the fall of the crypto LUNA, then by the closure of FTX, which was at the time of its bankruptcy the second largest platform in the world after Binance.
This is how the overall capitalization of the cryptocurrency market has tripled since December 2022, reaching to date according to the site CoinMarketCap the 2,620 billion dollars. Almost all altcoins have seen their prices increase in one year, many of them quite massively.
The halving is approaching
And if a certain euphoria is palpable among cryptocurrency investors, it is because the famous halving that we spoke of above has not yet taken place. This event is expected in mid-April, with the reward for each mined block increasing at that time from 6.25 bitcoins to 3.125 bitcoins.
However, in each previous cycle, the halving preceded a sharp rise in cryptocurrency prices, ultimately leading to what is known as a “bull run”, which corresponds to a rapid explosion in prices. And many hope that history will repeat itself once again.
Ethereum ETFs, a new boost?
Another piece of pending news gives investors optimism. Because a new financial tool is under discussion on the other side of the Atlantic: Ethereum ETFs. Like Bitcoin ETFs, accepted by the Securities and Exchange Commission (SEC) on January 10, and which have since been marketed on the New York Stock Exchange, Ethereum ETFs are in development. And if the American financial regulator continues to postpone its response, it will be obliged to formalize its position on May 23, the date on which it will have to position itself on the request of the management company VanEck.
If permission is ultimately granted, Ethereum could see the same kind of influx of money that followed the launch of Bitcoin ETFs. The latter are indeed a real success currently on the United States side. When they were launched two months ago, they represented $30 billion. Two months later, with the rise in prices and the purchase of new bitcoins, they already represent 50 billion dollars. Which obviously helped push prices up. Would Ethereum ETFs have the same effect?
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