The cryptocurrency Bitcoin has surpassed its previous record price of $64,400 (achieved on November 12, 2021), reaching a new peak of $68,834 as of 3:00 p.m. Tuesday afternoon according to Google Market Summary. Finance media company CNBC reported the currency reached a peak of $69,210.
Its latest surge began at the end of 2023, but was only around $44,000 at the start of 2024. Some analysts attribute its rapid rise to the introduction of bitcoin exchange traded funds (ETFs).
Related: BlackRock Launches Bitcoin ETF – Unlocking $19 Trillion of Investment Money?
“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.
The upward trend began to reverse in the afternoon, falling 8 percent to $61,973. Nevertheless, it is still up 40 percent from where it was at the beginning of the calendar year.
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.”
Shane Devine is a writer covering politics, economics, and culture for Valuetainment. Follow Shane on X (Twitter).
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