On 8th March 2024, Bitcoin experienced a brief but remarkable surge to a record high in a volatile trading session, further fueling the ongoing crypto frenzy within the investment community. The leading cryptocurrency surpassed the $70,000 milestone for the first time, propelled by investor interest in new U.S. spot exchange-traded crypto products and expectations of global interest rate decreases. Its price peaked at $70,105 before swiftly retracting, ultimately
settling at $68,317.72.

This surge in Bitcoin’s value coincided with a substantial influx of capital into ETFs in recent weeks, buoyed by bullish sentiment surrounding the upgrade to the Ethereum blockchain platform, home to the second-largest cryptocurrency Ether, and an upcoming Bitcoin “halving” event in April, which reduces the rate of Bitcoin production. However, skepticism persists regarding the speculative nature of these assets. Following its record high earlier in the week, Bitcoin experienced a sharp reversal, plummeting over 10% and dipping below the $60,000 mark.

According to Antoni Trenchev, co-founder of the crypto lending platform Nexo, navigating previous highs in Bitcoin’s price is notoriously challenging, with the potential for sudden and significant price fluctuations ranging from 10% to 20%. The approval of 11 spot Bitcoin ETFs by the U.S. Securities and Exchange Commission in late January marked a significant milestone for the industry, signaling a recovery from an 18-month crypto winter marked by corporate bankruptcies and scandals.

Even institutional investors, traditionally wary of crypto due to its volatility, are now allocating long-term investments, potentially bolstering the ongoing rally. Data from LSEG indicates that net flows into the top 10 U.S. spot Bitcoin funds totaled $2.2 billion in the week ending March 1, with over $2 billion directed towards BlackRock’s iShares Bitcoin Trust.

The positive sentiment surrounding Bitcoin has also spilled over into other digital tokens, particularly Ether, which has seen a more than 60% increase since the beginning of the year. Ether’s current value stands at $3,939.84, reflecting a 1.62% increase. Additionally, crypto-related stocks experienced gains on 8th March, with Coinbase shares rising by 8.2%, and crypto miners Riot Platforms and Marathon Digital increasing by 5.1% and 9.6%, respectively.