The Bitcoin (CRYPTO: BTC) price just smashed through its previous record high.
The token gained 3% over the past 24 hours and 15% over past 7 days to currently be worth US$66,014 (AU$88,018).
That handily surpasses the previous all-time high of US$64,863, set on 14 April this year. And it’s more than double the recent Bitcoin price lows of US$29,807 on 20 July, when the token came under pressure from China’s crackdown and its massive energy requirements.
Even as it marched to a new record, though, there was plenty of the volatility crypto investors have come to expect.
Over the past 24 hours the Bitcoin price traded as low as US$63,610 and as high as US$$66,930, a range of more than 5%, according to data from CoinMarketCap.
Volatility aside, Bitcoin’s market cap now stands at US$1.24 trillion, representing almost half the total crypto market valuation of some US$2.6 trillion.
Bitcoin price record driven by BITO
A range of factors have been helping drive the Bitcoin price higher. These include investor fears about inflation sapping the value of fiat currency, cashed up households that haven’t been able to spend in their normal way due to the pandemic speculating on the price, and an increasing acceptance by institutional investors.
Most recently, Tuesday’s launch of the first United States listed Bitcoin exchange traded fund (ETF) ProShares Bitcoin Strategy ETF (NYSE: BITO) has been fuelling animal spirits. On its first day of trading, the turnover in BITO was more than US$1 billion, making it the second most heavily traded fund on its debut day.
Yesterday, overnight Aussie time, BITO again lit up the screens, with a turnover of some US$1.2 billion.
(You can get the full scoop on BITO’s launch here.)
What the experts are saying
Addressing the Bitcoin price record and the launch of BITO, Brendan Halfpenny, co-founder of CoinSpot said:
As BTC is steadily hovering around its all-time high, cryptocurrency investors are becoming increasingly varied. With more traditional finance sectors branching into cryptocurrency products, this further adds legitimacy to the space and provides greater access for more investors.
Jesse Proudman, CEO of crypto advisory Makara, added (quoted by Bloomberg), “It’s a validating moment,” “It’s no longer a question of does this asset class continue to exist – I think that’s a really meaningful mark in the history of the broader digital-asset class.”
And according to Leah Wald, CEO of Valkyrie Investments, which is awaiting approval for its own futures-based Bitcoin fund:
Clearly, the launch of a Bitcoin futures ETF in the US has sent prices soaring to these levels. Traders and investors perhaps see this is precursor to the holy grail – a spot Bitcoin ETF – and their optimism is pouring into the largest cryptocurrency at a furious pace, with all money FOMOing into the trade from all corners of the market.
If you’re feeling a bit of FOMO yourself, don’t forget the Bitcoin price can fall just as fast, or faster, than it goes up.
Never invest more than you can afford to lose.