Bitcoin surged past the $65,000 mark today, edging closer to its all-time high of $69,000 achieved in November 2021. The cryptocurrency’s market value surpassed $1.2 trillion, contributing to the overall cryptocurrency market value of $2.4 trillion.
Despite a slight decline in purchasing volumes of Bitcoin exchange-traded funds on Friday, the BlackRock Fund maintained purchasing levels exceeding $1 billion in the latest trading session last week. Net investments in traded funds have reached $7.3 billion since their approval in January, reports Al-Jarida daily.
Analysts attribute the rise in Bitcoin’s price to growing momentum, high institutional demand, and anticipation of the upcoming Bitcoin halving process scheduled for April.
The halving process, expected to reduce the Bitcoin mining reward by half, will effectively decrease the coin’s supply. This event, coupled with the launch of spot ETFs, may lead to increased demand and a supply squeeze, potentially placing a high premium on Bitcoin.
Bitcoin miners are anticipated to be among the primary beneficiaries of this scenario, as the reduction in supply could drive up the coin’s value, making mining operations more lucrative.
