Bitcoin has reached a high price of $73,500, coming close to its all-time high of seven months ago. This surge marks a nearly 75% increase in value year-to-date and a doubling in value from the previous year. Positive factors contributing to this rise include the success of spot ETFs, new monetary easing cycles in major economies, and the increasing likelihood of a win for the crypto-friendly presidential candidate Donald Trump.
During U.S. trading hours on Tuesday, Bitcoin almost reached a new all-time high of $73,798 before experiencing a slight pullback. Currently, it is trading at $73,000, showing a 4.6% increase in the past 24 hours. This performance is in line with the broader CoinDesk 20 Index.
After hitting its peak on March 14, Bitcoin went through a consolidation phase, dropping to under $50,000 in the summer but mostly staying between $60,000 and $65,000. This period of uncertainty tested investors’ patience, leading to concerns that the bull market cycle that began in early 2023 had already peaked. Despite multiple attempts to reach new highs being met with selling pressure, the recent surge has pushed Bitcoin’s year-to-date gains close to 75%.
The rally in Bitcoin’s price can be attributed to various factors, including the approval of spot-based ETFs by U.S. regulators on January 10 of this year. These ETFs, particularly BlackRock’s iShares Bitcoin ETF (IBIT), have been hugely successful, with IBIT alone attracting nearly $24 billion in investments as of last week.
Additionally, the rally has been supported by new monetary easing cycles initiated by major Western central banks in 2024, significant fiscal and monetary stimulus from China, and the increasing chances of a presidential election win for the crypto-friendly GOP nominee Donald Trump.
Overall, Bitcoin’s recent price surge is reflective of the growing interest and confidence in the cryptocurrency market, driven by a combination of regulatory approvals, economic policies, and political developments. Investors are closely monitoring these factors to gauge the future trajectory of Bitcoin’s price and the broader cryptocurrency market.
