Bitcoin ‘s price reached a new all-time high above $69,200 on March 5 after rising 5% in the previous 24 hours.
The world’s first cryptocurrency has risen more than 21% over the past week to beat the previous all-time price peak of $68,990, recorded on the Coinbase exchange on November 10, 2021.
The record high came after large inflows of new bitcoin exchange-traded funds(ETFs) in the United States.
According to a research report by Bitfinex analysts, made available to Cointelegraph, the ETFs have introduced passive, price-independent demand for Bitcoin, which has solidified its status as a valuable asset and led to an increase in its price.
“The goal of our analysis is a modest price target in the $100,000 to $120,000 range, which can be reached by Q4 2024, with the peak of the cycle to be reached in 2025 in terms of total cryptocurrency market capitalization.”
According to analysts, exchange-traded ETFs may ease Bitcoin ‘s volatility after it reaches new cycle highs:
“The fact that we are now dealing with ETFs potentially means that any downward trend after the current cycle peak could be less drastic than previous downward trends. We’ve seen a similar stable price trajectory after the huge rise following the launch of gold ETFs.”
Bitcoin exchange-traded ETFs have been an important part of the current surge. By February 15, Bitcoin ET Fs accounted for about 75 percent of new investments in the world’s largest cryptocurrency, exceeding the $50,000 level , according to CryptoQuant research.
Bitcoin ETFs could surpass gold ETFs in terms of assets under management in the next two years, according to a Feb. 26 research report shared by Bloomberg senior analyst Eric Balchunas and analyst Andre Yapp.
Despite the new all-time peak, bitcoin could experience significant volatility after the upcoming halving, according to Paul Eisma, head of options trading at XBTO Futures. Eisma told Cointelegraph:
