Bitcoin Hits a New All-Time High, Surpassing $72,000

Bitcoin, the world's highest-valued cryptocurrency, achieved a new milestone on Monday by surging above the $72,000 mark. The token reached a fresh all-time high of $72,030, breaking the previous record set in November 2021. This remarkable surge has contributed to a nearly 70% gain in Bitcoin's value for the year so far, according to CoinDesk data. In 2021, Bitcoin had reached $68,790 during significant growth in the cryptocurrency industry.

Analysts attribute the recent surge to increased cash inflows into US-based spot Bitcoin exchange-traded funds (ETFs). Additionally, the Federal Reserve's expectations of an upcoming interest rate cut have fueled positive sentiment in the cryptocurrency market.

The US regulator's approval of cryptocurrency exchange-traded funds (ETFs) in January has facilitated more retail investors' indirect exposure to Bitcoin through funds traded on exchanges. Institutional investors have also shown growing interest in the leading cryptocurrency.

This rally marks a significant turnaround for Bitcoin, considering its value had dropped below $20,000 in 2022, leading to a substantial reduction of nearly $1.4 trillion in the overall cryptocurrency market amid industry challenges.

Anthony Scaramucci, founder of SkyBridge Capital, characterised the recent Bitcoin rally as a "really big breakthrough for Bitcoin as a digital asset" and highlighted its broader implications for digital property in general.

Bitcoin's resurgence follows diverse predictions about its future value. Standard Chartered Bank forecasted that Bitcoin could reach $100,000 by the end of 2024 or even earlier. Cathie Wood, CEO of ARK Invest, predicted a Bitcoin price surpassing $1 million.