Bitcoin hits record price of $72,968
Analysts believe $80K is possible as market grows
Bitcoin is sustaining a recordbreaking run, lifted by the unprecedented amounts of capital flowing into crypto products as well as a looming reduction in the digital token’s supply growth.
The original cryptocurrency reached an all-time peak of almost $72,968 (U.S.) on Tuesday, before paring the increase. It was the third record in five days.
A record $2.7 billion flowed into crypto assets last week, according to a report from CoinShares international Ltd., with the bulk of that going to bitcoin.
Both the token and a gauge of the largest 100 coins are up roughly 70 per cent this year.
The success of spot bitcoin exchange-traded funds launched in the U.S. on Jan. 11 is a key driver of recent momentum. The ETFs from the likes of BlackRock Inc. and Fidelity Investments have attracted a net inflow of about $9.5 billion so far. In the U.K., the London Stock Exchange said it would accept applications for bitcoin and ether exchange-traded notes, while Thailand’s securities regular signalled it would open overseas crypto ETFs to retail buyers.
“We are seeing institutional adoption in the U.S.,” Ophelia Snyder, 21Shares’ co-founder and president, said on Bloomberg Television.
“It’s quite early still. Not all of the institutions, not all of the wire houses, have access to it.”
The structure of the bitcoin market is changing as they enter the fray, for instance a greater focus on U.S. trading hours, she added.
Some commentators are flagging the possibility of further gains.
Tony Sycamore, a market analyst at IG Australia Pty, wrote in a note that bitcoin “is expected to be wellsupported on dips by those looking to position for a push toward $80,000 in the months ahead.” Fairlead Strategies LLC technical analyst Katie Stockton also suggested $80,000 is within reach in the medium term.
Bitcoin’s rally is creating roughly 1,500 new “millionaire wallets” daily, according to crypto analytics firm Kaiko Research, though the nature of blockchain data means it is difficult to determine which of those wallets are held by individuals and which by companies.
That is still lower than the pace of millionaire wallets minted during the token’s 2021 bull run, however, when more than 4,000 wallets a day hit the million-dollar mark.