Bitcoin Price Scales 2021 All-Time High to Hit $69,300

Bitcoin, the world’s largest cryptocurrency by market cap, successfully attained a new all-time high (ATH) of $69,325, scaling the previous record set in November 2021. Bitcoin hit the new record on Tuesday following increased activity on the network, mostly from the spot exchange-traded funds (ETFs) trading in the United States.

Unfortunately, Bitcoin’s new record was short-lived, as the king coin fell more than 3% in 30 minutes to $67,000. According to CoinMarketCap data, Bitcoin is trading at $66,357 as of this writing. Despite the crash, Bitcoin has climbed nearly 9% in the last 7 days and more than 5% in 24 hours.

Bitcoin is receiving attention mainly from the large numbers the asset is recording in spot ETF trading. On March 6, the ETFs received net inflows of $648 million, the largest in one day since the SEC’s approval. Blackrock’s $IBIT alone added $788.3 million (12,447.3 BTC), while Fidelity’s $FBTC recorded $125.6 million (1,984 BTC).

Although Bitcoin is already the largest cryptocurrency, the network activity indicates significant interest in the asset and a likely increase in adoption. Already, most merchants and service providers that accept crypto likely support Bitcoin in addition to other assets. This acceptance is present across various industries, including online crypto casinos that set themselves apart from traditional platforms with instant withdrawal options for players requesting winnings in Bitcoin. As Bitcoin’s popularity increases, these sites could welcome more patronage, allowing them to expand on their bonuses, game libraries, and other offers. The retail industry could also benefit from Bitcoin’s growing popularity, with stores perhaps able to see a surge in efficiency and security in transactions, fostering a more globalized and accessible marketplace for consumers around the world. Additionally, the remittance industry stands to gain from reduced transaction fees and faster cross-border payments, making it easier and more affordable for individuals to send money to family and friends internationally.

These industries would have been pleased when on Monday, 10x Head of Research Markus Thielen predicted Bitcoin’s price jump. In a note titled “Everybody Will Be Astonished by Bitcoin’s Price Action This Week,” Thielen stated that while several traders have tried to liquidate leveraged long positions, there are no sellers.

In addition, the note pointed out that the volume of Bitcoin held on exchanges has fallen by 63,000 BTC over the past month. Coinbase alone lost 28,000 BTC, falling from 400,000 BTC to 372,000 BTC. Furthermore, Thielen noted Grayscale Investments’ continuous outflows but added that Bitcoin will likely “make a big move up” if the outflows fall to less than $100 million.

Bitcoin’s new record has raised the value of the crypto balance held by El Salvador, the first country to make Bitcoin legal tender. Figures from data monitoring service BitcoinTreasuries show that El Salvador’s Bitcoin reserves have increased by $50 million against their cost basis. At $69,000, the country’s Bitcoin balance is now worth $164.7 million, a 53% gain considering that the average purchase price is $44,300. Back in November 2022, and only a few months after making Bitcoin legal tender, President Nayib Bukele announced that the country will begin investing in Bitcoin, buying 1 BTC a day.

Although Bitcoin successfully hit its ATH, a report pointed out that BTC’s value has not reached its 2021 ATH when adjusted for inflation. According to the report, Bitcoin must rise to $78,905.45 to hold the same value as it did at $69,000 in 2021. Adjusted for inflation, Bitcoin’s new peak would equal $60,907 in 2021.