Summary
TLDR: Bitcoin reached a new all-time high of $69,170 but dipped 11% later, still above $60,000. Analysts believe the dip is expected, but bitcoin’s upcoming halving cycle and US interest rates could lead to a lasting run. Bitcoin is seen as a hedge against inflation and new spot bitcoin ETFs are providing easier access for institutions.Ether also spiked but later dropped, while most other tokens remain below previous cycle highs. Institutions are just starting to get involved in the market.
Key Points
1. Bitcoin dipped more than 11% Tuesday afternoon in New York after surging earlier in the day to a new record-high price of around $69,170. It’s the first time the largest cryptocurrency has broken an all-time high in 27 months.
2. Even with the correction, bitcoin (BTC) has managed to stay above $60,000, a resistance level analysts say shows interest remains high.
3. “If previous non-crypto-related ETFs can teach us anything, it is that real growth after an ETF approval can be a multi-year process,” Chainlink co-founder Sergey Nazarov told Blockworks. “After waiting almost a decade for this ETF, I’d be surprised if this core group of holders would choose to relinquish their coins right as Wall Street finally decides to legitimize the space.”