Bitcoin hits crazy $72,000 figure that qualifies for the big leagues

Cryptocurrencies aren't slowing down. Over the past 24 hours, market capitalization has grown by more than 1.5% to exceed $2.15 trillion. This is due to two factors: the remarkable growth of ethereum (ETH), which rose to $3300, and above all, the impressive rally of bitcoin (BTC).

The reigning cryptocurrency continues to rise and is now above the $72,000 mark and approaching all-time highs thanks to the momentum generated by spot ETFs and the proximity of the network's halving. As for the former, BlackRock's iShares Bitcoin Trust (IBIT) fund reached daily trading volume above $1 billion for the second day in a row.

ETF analyst at Bloomberg

"That's a crazy number for such a new ETF, especially one that has ten competitors. Intraday volume of $1 billion is big-league level, enough to get the attention of many institutional investors. Volume is not just about flows per se, but in many ways it is just as important over the long term. Liquidity reduces friction and costs and increases anonymity. That's why institutions tend to use only ETFs with high volume," said Eric Balchunas, an ETF analyst at Bloomberg.

According to data cited by Balchunas, trading volume for U.S.-listed spot bitcoin ETFs topped $2 billion, but fell slightly short of Monday's record daily volume of $2.4 billion. It also came after a fairly positive day for Grayscale Bitcoin Trust (GBTC), which appears to have stabilized and significantly reduced net outflows. Experts say that if the outflows in GBTC can be reversed, the reigning cryptocurrency could get a major boost in growth.

Cryptoasset analyst at eToro said

"Since its launch, bitcoin spot ETFs have accumulated assets representing more than 3% of all bitcoins in existence today. This milestone underscores the growing trend of institutional investors seeking exposure to bitcoin. I expect this trend to continue, and it is quite possible that bitcoin will reach a new all-time high (price will exceed $72,000) in the coming weeks," notes Simon Peters, Crypto Asset Analyst at eToro.

In addition, the impending halving of the bitcoin network is also contributing to the price increase. According to Peters, supply has already shrunk significantly as investors continue to hold onto their bitcoins rather than spend them; in fact, 70% of all bitcoins in circulation haven't moved in over a year, and the number available for purchase on exchanges is at its lowest level since early 2018. And "halving" is only going to amplify this dynamic.

"Halving" historically marks the start of another bitcoin bull market, and typically the price movement has been parabolic for a year afterward. Since the last halving of the block reward in May 2020, the bitcoin price has risen 600% to a current all-time high of $72,000," Peters reminds us.

Will we see such a significant percentage increase

According to this expert, while we may not see such a significant percentage increase this time around, as it has been declining every cycle, it is possible that we will see the bull market peak "somewhere in the neighborhood of six figures."

Other analysts

Rania Goulet of XS.com, are also cautious and believe the upside momentum may be limited. "In just 17 days, more than $10 billion has been added to the market value of stocks amid the growing expectation of a halving, which has historically caused price swings, including a drop before this event that I think is likely to be repeated," she reflected.

To summarize, we see a success of unprecedented proportions that inspires faith, encouraging investors to make investments that clearly justify the risk. Six-digit figures, never ceasing to grow, setting new records every season. Bitcoin is definitely the currency of the future and an innovation after which our world will never be the same again.