Bitcoin briefly reached $69,646 on Friday, marking a new all-time high (ATH) amidst a sustained rally that, despite the strong enthusiasm in the digital asset market, again failed to break through, this time crashing against the $70,000 resistance level.
It is the second time this week that Bitcoin reaches a record: it traded at $69,170 on Monday, surpassing the level last seen over two years ago, in November 2021, with an intraday trading price of $68,991.85.
The leading cryptocurrency by market capitalization is testing these new levels while it approaches a new halving, a milestone that will reduce the reward for mined blocks to half. The halving is expected to take place in April. The event has historically coincided with a rally in Bitcoin's price, and consequently, in most other cryptocurrencies.
It also coincides with a strong influx of institutional purchases since the approval of the spot Bitcoin ETFs, which were approved in January by the Securities and Exchange Commission (SEC), making it easier for institutions and some investors to participate in the crypto ecosystem.
In the close to two months since the products started trading in the U.S., their combined trading volume has now surpassed $100 billion, as reported by the specialized outlet Coingape. Daily purchases exceeded by10 times the new bitcoins generated per day by miners, which is believed to have pushed the price upwards.
El Salvador President Nayib Bukele, who has used the country's reserves to buy Bitcoin and has been an outspoken supporter of the digital asset (even turning it into sovereign currency), has been pointing out that this rally is more solid than the previous one, underscoring institutional adoption as a large pillar. A meme posted on Monday illustrates this point.
Same same, but different 🙂 pic.twitter.com/6DHbJ0mWSP
— Lina Seiche (@LinaSeiche) March 5, 2024
In any case, as highlighted in a recent interview with The Latin Times, Ignacio Carballo, Director of the Center for Alternative Finance at UCA University and Head at PCMI, emphasized the importance of not succumbing to the Fear of Missing Out or FOMO during these all-time highs (ATHs).
"If you are new to this world, it's essential to educate yourself well before entering," was the first of his recommendations for new investors.
© 2024 Latin Times. All rights reserved. Do not reproduce without permission.
