Bitcoin surged to a fresh all-time high on Tuesday, driven by an influx of investment into U.S. spot exchange-traded crypto products and expectations of a global decrease in interest rates.
The cryptocurrency reached a peak of $69,202, surpassing its previous record of $68,999.99 set in November 2021. Investor interest has grown significantly since the Securities and Exchange Commission approved 11 spot bitcoin ETFs in late January.
Bitcoin’s remarkable ascent of nearly 160% since October, including a 44% surge in February alone, contrasts sharply with the challenging market conditions of 2022. That period was marked by an 18-month-long crypto winter, characterized by notable corporate bankruptcies and scandals.
The recent surge in Bitcoin and the broader crypto market has been fueled by speculation about the Federal Reserve’s potential reduction of U.S. interest rates.
Analysts also point to anticipation surrounding the upcoming halving event in April as a contributing factor. This event occurs every four years and involves halving the rate at which new tokens are released, as well as the rewards given to miners.
