- Bitcoin has set up a new all-time high above $69,324 on Tuesday after rallying nearly 9% in the last 24 hours.
- BTC has registered a nearly 65% year-to-date gain on top of the 155% rally seen in 2023.
- The spot ETF approval, which led to a surge in capital inflows, is one of the most important narratives responsible for the parabolic rally.
In addition to the Bitcoin spot ETF approval being the main driver behind BTC’s price rally to new all-time highs, the halving narrative has also played a pivotal role. The fourth Bitcoin halving is expected to occur on April 18, in roughly 47 days. This event will slash the block reward for miners from 6.25 BTC to 3.125 BTC. The fourth Bitcoin halving, embedded within Bitcoin's code, reduces the rate at which new Bitcoins enter circulation by 50% every roughly four years or 210,000 blocks.
Historically, Bitcoin halvings have been followed by significant price increases, with some attributing this to the decreased supply, making Bitcoin potentially more scarce and valuable. The upcoming halving is anticipated by many to extend the ongoing bullish run for Bitcoin.
This outlook is shared by many investors in the crypto space, which is why the halving could also become a sell-the-news event. Hence, BTC could form a local top a few days before the halving.
Also Read: Bitcoin halving event draws close, BTC trades below $43,000 amidst altcoin season
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Bitcoin (BTC) reached a fresh all-time high of $69,324 on Tuesday, officially surpassing its previous all-time high of $68,999.99 set in November 2021.
BTC/USDT 1-day chart
Bitcoin hits a new all-time high of $69,324
This significant milestone marks a turning point for the world's leading cryptocurrency, potentially signifying a renewed wave of bullish sentiment in the market.
Here's the breakdown:
- New All-Time High: Bitcoin reached a record-breaking price of $69,324 on Coinbase on March 5. The move was short-lived, after which BTC quickly corrected to around $67,000.
- Previous Record Shattered: The previous all-time high of $68,999.99, established in November 2021, has been surpassed.
- Market Shift: This surge suggests a potential shift towards a more optimistic outlook, possibly paving the way for further price increases.
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