'Bitcoin 100 Million Era' Opening...? Highest in 2 Years 4 Months (Update)

Rise Due to Spot ETF Listing and April Halving Approaching
US Fed Rate Cut Outlook Also Stimulates Buying Momentum

The price of Bitcoin, the leading cryptocurrency, surpassed $69,000, setting a new all-time high. The large-scale inflow of funds due to the listing of Bitcoin spot exchange-traded funds (ETFs) acted as the driving force behind the rise. If this rally continues, the era of 'Bitcoin reaching 100 million won' could open soon.

On the 5th, as Bitcoin continued its unstoppable rise and surpassed 90 million won, the Bitcoin price was displayed on the electronic board at the Upbit Customer Support Center in Gangnam-gu, Seoul. Photo by Jo Yongjun jun21@

On the 5th (local time), Bitcoin recorded $69,115 (approximately 92 million won) at 10:05 a.m. Eastern Time, up 4.06% compared to 24 hours earlier. It surpassed the previous all-time high of $68,990.9 recorded on November 10, 2021, breaking the record for the first time in 2 years and 4 months. Bitcoin's price rose to the $69,300 range during the day but fell to around $63,088.4 as of 2:23 p.m.

Bitcoin has risen about 60% so far this year. After surpassing $50,000 on the 15th of last month, it exceeded $60,000 in just 16 days. The unstoppable upward trend continues this month, leading to speculation that breaking $70,000 is only a matter of time. Ethereum also rose more than 50% this year, buoyed by Bitcoin's rise.

Bitcoin surged after the COVID-19 pandemic due to increased market liquidity but declined due to the Federal Reserve's (Fed) aggressive tightening that began in 2022. Additionally, the bankruptcy of FTX, the world's largest cryptocurrency exchange, the Terra-Luna crash, and regulatory pressure from the U.S. Securities and Exchange Commission (SEC) caused Bitcoin to fall to $16,000 in 2022.

Recent drivers of the Bitcoin rally include the listing of spot ETFs and the upcoming halving event. Since the U.S. SEC approved the listing of Bitcoin spot ETFs in January, more than $15 billion in funds have flowed in. Trading volume continues to increase. According to Bloomberg, $4.7 billion flowed into 10 ETFs on the first day of Bitcoin spot ETF listing on January 11, and by February 28, the daily inflow had increased to $7.7 billion.

Alex Thorn, Head of Research at cryptocurrency asset manager Galaxy Digital, said he was "surprised by the scale of investment inflows into Bitcoin ETFs" and described ETFs as "a definite market" with Wall Street participation.

The halving event, which will reduce Bitcoin supply by half in April, is also driving the upward trend. After the halving expected at the end of next month, the daily Bitcoin mining output is expected to decrease from the current 900 to 450. Bitcoin prices have risen significantly during the three previous halving events.

The 'FOMO (Fear Of Missing Out)' psychology is also stimulating investors' buying sentiment for Bitcoin. Stefan von Hani, Head of Trading at OSL SG Pte, said, "The spot ETF listing and the upcoming halving, which have set new all-time highs, are likely to trigger genuine FOMO psychology."

Expectations that the U.S. will avoid a recession and that the Federal Reserve (Fed) will begin cutting interest rates within the year are also pushing Bitcoin prices higher.

Opinions on future Bitcoin price forecasts are divided. U.S. investment bank Bernstein predicted early on that Bitcoin would surpass $80,000 this year and reach an all-time high. Nathan McCauley, CEO of Anchorage Digital, said that Bitcoin breaking its all-time high "is just the beginning of a bull market" and "the best moments are yet to come."

On the other hand, JP Morgan expects Bitcoin prices to fall to $42,000 if enthusiasm wanes after the April halving.