Bitcoin, the cryptocurrency par excellence, has passed an important milestone, trading above $70,000 for the first time in its history, according to data from Bitstamp.
Bitcoin, the cryptocurrency par excellence, has passed an important milestone, trading above $70,000 for the first time in its history, according to data from Bitstamp.
The leading digital currency hit an intraday high of $70,184 before retreating to the $68,000 level.
According to data from CoinGlass, total liquidations amounted to $258.56 million in the last 24 hours, with long positions accounting for $120 million and short positions accounting for $138.56 million.
Growing interest in Bitcoin ETFs
The rise in Bitcoin price comes amid a notable increase in investor interest, particularly in Bitcoin exchange-traded funds (ETFs).
Bitcoin ETFs experienced a significant capital inflow, with inflows reported totaling $563 million the previous day. In stark contrast, gold ETFs saw outflows worth $85 million.
This indicates growing confidence in Bitcoin as a store of value, which could reduce the market share that gold traditionally holds.
US employment data
The dynamism of Bitcoin’s value also shows its growing correlation with the stock market, which had a positive response to February’s strong employment data.
The stock market rally, fueled by expectations of a Federal Reserve rate cut, has further strengthened investor confidence in several asset classes.
As Guru-Investingreported, the S&P 500 index recently hit another all-time high.
The long-awaited halving event
Another factor contributing to Bitcoin’s rise is the anticipation of the upcoming “halving” event. This pre-scheduled process, which occurs approximately every four years, halves the reward for mining Bitcoin transactions, effectively reducing the speed at which new Bitcoins are created.
The next halving is projected to occur on April 20, with current progress at 97% and only 6,262 blocks remaining until the halving block of 840,000. Historically, this scarcity mechanism triggers bullish sentiment as supply growth slows.
