Bitcoin price hits new record high

Anthony Cuthbertson
Tuesday 05 March 2024 10:38 EST
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(The Independent)

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Bitcoin has hit a new record high following an astonishing price recovery that has seen it triple in value over the last 12 months.

The cryptocurrency rose above $69,000 on Tuesday, breaking the previous record set in November 2021.

The price rally has been driven by billions of dollars worth of institutional investment to the market, brought in by the first ever bitcoin spot exchange-traded fund (ETF) in the US, which was approved by the Securities and Exchange Commission (SEC) in January.

The price has also been boosted by anticipation surrounding bitcoin’s upcoming halving, which will see mining rewards for the cryptocurrency slashed in half.

Taking place roughly every four years, the event has historically preceded record-breaking price rallies. The next halving is scheduled to take place on 19 April, 2024.

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The decrease in supply as a result of the halving, coupled with the increased demand from institutional investors, was expected to push bitcoin to new record highs.

“If the pace of Bitcoin issuance slows while demand either remains steady or increases, the effect on price can be substantial,” Duncan Ash, head of product stratefy at blockchain protection firm Coincover, told The Independent.

“If the next halving follows the same pattern, we can expect continued growth in Bitcoin’s price during the months ahead.”

Other leading cryptocurrencies, including Ethereum (ETH), Cardano (ADA) and Solana (SOL), have seen significant price gains in recent days, with the overall crypto market swelling to more than $2.5 trillion.

The latest price surge means bitcoin now has a similar market cap to silver.

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