Bitcoin (BTC) continues its impressive climb, fueled by increased interest from institutional investors. The cryptocurrency hit a new all-time high (ATH) of around $73,650 during Wednesday’s mid-London session.
The global cryptocurrency market cap is nearly reaching its previous ATH of over $3.1 trillion, which was reached during the peak of the 2021 bull market. In the past 24 hours, the total crypto market cap increased by approximately 2 percent, approaching $2.9 trillion. However, this rise in value also saw over $324 million in liquidations across crypto leverage trading due to increased volatility.
What’s Driving the Rally?
Various macroeconomic factors and increased institutional participation have contributed to the recent surge in crypto prices, particularly Bitcoin. The approval of spot Bitcoin exchange-traded funds (ETFs) in the United States has attracted significant investments from major Wall Street firms.
For example, on Tuesday alone, cash inflows into spot Bitcoin ETFs exceeded $1 billion, with BlackRock’s IBIT receiving over $849 million.
Bitcoin’s volatility increased towards its new ATH following Tuesday’s news of sustained inflation in the United States and concerns over rising national debt. Additionally, excitement in the crypto market grew with the activation of Ethereum’s Dencun upgrade on the mainnet.
Read More: Ethereum Price Aims for ATH in March Amid the Dencun Upgrade
Where Are We Headed Next?
Bitcoin’s upward trajectory against the US dollar suggests the possibility of reaching a six-figure value after overcoming recent technical hurdles. While some analysts, like Michaël van de Poppe, warn of a potential 20-30 percent market correction, overall sentiment favors the continued dominance of Bitcoin bulls.
The altcoin market is also experiencing growth alongside Bitcoin, with Ethereum, Binance Coin (BNB), and Avalanche (AVAX) leading the charge in the ongoing bullish trend.
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