The price of a Bitcoin reached over $73,000 on Wednesday morning, setting a new all-time record for the cryptocurrency after having broke it just last week at $69,000.
Coindesk reported that Bitcoin hit $73,219 at 8:18 a.m. the morning of March 13th.
As Valuetainment previously reported, Bitcoin began to surge in late 2023 but was still in the $40,000s in early January.
Analysts are attributing its sharp rise to the introduction of Bitcoin exchange traded funds (ETFs). “Investors are getting turned on to the fact that bitcoin can be treated as an uncorrelated asset, which makes it extremely attractive for portfolio diversification,” LMAX Group market strategist Joel Kruger told CBS News.
Some crypto market analysts believe unrealized profit margins will cause a drop off. “The market is positioned for a steep correction, possibly between 10 percent and 20 percent,” said crypto hedge fund Kbit CEO Ed Tolson. “Any material move down will result in cascading liquidations on the crypto perpetual swap markets, where retail has piled into levered long positions, where funding rates are very high. Over the next few quarters, we expect bitcoin to perform well, but with sharp corrections along the way.”
Watch Patrick’s video on Bitcoin ETFs, what they mean for the future of finance and how they might be a Trojan horse:
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