Bitcoin is Breaking Records, Crosses $73,000 to Reach New ATH

• Blockchain Council
• September 12, 2024

Bitcoin enthusiasts are celebrating as the leading cryptocurrency reached an unprecedented milestone, soaring to new heights in the first quarter of 2024. Surging over 250% in the past year and an additional 65% since the beginning of 2024, Bitcoin has now surpassed the remarkable $73,000 mark, setting a new all time high on March 13.

The feverish excitement surrounding Bitcoin’s monumental climb contrasts starkly with the subdued performance of alternative cryptocurrencies, which have struggled to replicate Bitcoin’s meteoric rise or surpass previous milestones. While some have seen modest gains, they pale in comparison to Bitcoin’s monumental surge.

Bitcoin’s phenomenal ascent can be attributed to several key factors, including the green light given to Bitcoin ETFs, the imminent halving event, and increased institutional investment. Unlike its counterparts, Bitcoin’s resilience has solidified its position as a frontrunner in the crypto sphere, weathering market fluctuations with unwavering strength.

While the crypto landscape braces for further highs, market experts emphasize the significance of institutional adoption in propelling Bitcoin’s surge. The recent announcement by the London Stock Exchange to accept Bitcoin and Ethereum Exchange-Traded Notes (ETNs) later this year underscores the growing acceptance of cryptocurrencies among mainstream institutions.

Rajagopal Menon, VP at WazirX, highlights the implications of institutional interest, noting, “Investors perceive institutional adoption as a testament to Bitcoin’s credibility, leading to increased liquidity in the market.” This surge in demand, exemplified by Tether’s infusion of $2 billion USDT, underscores Bitcoin’s dominance among ETFs.

“Altcoins, particularly memecoins, have also experienced a resurgence,” Menon adds. “The retracements following Bitcoin’s ascent provided a catalyst for altcoins like Solana and Ethereum, which have witnessed significant gains in recent weeks.”

However, despite these developments, Bitcoin remains the undisputed leader, with other top altcoins trailing behind. The total global crypto market capitalization surged by over 4%, surpassing $2.7 trillion, with Bitcoin commanding over $1.41 trillion of the market share.

Ethereum, the second-largest cryptocurrency, has experienced a modest decline from its all-time high, while other altcoins such as BNB, Solana, and Cardano lag behind significantly. XRP, once soaring at $3.84, has plummeted by 83% since its peak in January 2018.

The surge in Bitcoin’s price coincides with increased institutional interest in Bitcoin spot ETFs and the impending halving event, which is anticipated to reduce supply and bolster prices. Edul Patel, CEO at Mudrex, emphasizes the ripple effect of Bitcoin’s surge on other altcoins, noting Ethereum’s steady climb towards its record high.

The launch of US Bitcoin Spot ETFs for Indian investors by Mudrex further underscores the growing accessibility and mainstream adoption of cryptocurrencies. Indian investors can now engage in Bitcoin ETFs with a minimum investment of $5,000, signaling a broader shift towards crypto investments.

Meanwhile, regulatory developments in the UK signal a thawing stance towards cryptocurrencies, with plans to allow bitcoin-linked securities on the stock market. Nathan Catania, Partner at XReg Consulting, acknowledges the cautious approach, citing concerns over volatility and consumer protection.

In tandem with Bitcoin’s surge, other cryptocurrencies experienced notable gains, with Avalanche and Toncoin leading the charge. Despite a slight decrease in overall crypto market volume, optimism remains high, buoyed by institutional buying and positive investor sentiment.

As Bitcoin continues to defy expectations, analysts anticipate a potential cooling period amidst ongoing market volatility. However, with institutional backing and growing investor confidence, Bitcoin’s trajectory towards $100,000 remains a huge possibility, signaling a new era of mainstream adoption and financial innovation in the crypto market.