Bitcoin Hits Record High Above $69,000 Amid Surge in Spot ETF Activity

Galaxy Digital CEO Mike Novogratz, a pioneer Bitcoin adopter, expressed on X uncertainty about where the rally might halt, emphasizing Bitcoin’s current phase of price discovery, particularly with increased accessibility for U.S. wealth. Galaxy Digital, in collaboration with Invesco, is among the issuers of the ten U.S.-based spot ETFs.

Bitwise CEO Hunter Horsley, another ETF issuer, suggests that Bitcoin’s journey is just beginning, foreseeing a potential rise to $250,000, surpassing bullish expectations. Observers point out that Bitcoin officially entered a bull market in mid-2023 when BlackRock, the world’s largest asset manager, initiated the filing process for a Bitcoin ETF. This marked the third bull run for Bitcoin, fueled by its recognition as an institutional-grade asset class and favorable macroeconomic factors.

The second bull run, driven by Covid-era policies, regulatory shifts allowing institutional adoption, Ethereum’s maturity enabling DeFi growth, and substantial venture capital investment, saw Bitcoin reaching an all-time high of $69,045 in 2021. However, the momentum was disrupted by record-setting inflation, Fed rate hikes, and prominent incidents like the collapse of Luna, Celsius, Three Arrows Capital, and the downfall of FTX.

Reflecting on previous years, 2022 witnessed excitement and challenges, reminiscent of the 2017 crypto roller coaster. Bitcoin, starting the year above $900, concluded near $20,000, facing hurdles such as regulatory actions by China’s central bank, SEC’s Winklevoss ETF rejection, and the burst of the Initial Coin Offering (ICO) bubble. ICOs, while hosting some crucial projects, were largely exposed as scams, triggering a 70% drop from 2018 highs. This initiated the 2018-2019 crypto winter, with Bitcoin bottoming at $3,100 before commencing the rally amid the Covid stimulus in March 2020.