Bitcoin (BTC) Price Crosses $70,000 First Time in History: What Happens Next?

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Published: Mar 8, 2024, 17:47 GMT+00:00

Key Points:

Bitcoin (BTC) price crossed $70,000 mark on March 9 2024, to claim a new all-time high.
This milestone sends BTC total market capitalization above $1.4 trillion, further emphasizing Bitcoin's resilience and growing recognition of crypto currencies as a legitimate asset class.

The remarkable ascent to $70,000 reflects the growing investor confidence and widespread acceptance of Bitcoin as a store of value and hedge against inflation. Since its inception, Bitcoin has captivated both retail and institutional investors, with its decentralized nature and finite supply distinguishing it from traditional fiat currencies.

Bitcoin (BTC) ETFs Played a Key Role

Bitcoin’s surge to $70,000 comes amidst a backdrop of a prolonged rally that began in mid-October 2023. However, the rally entered second-gear on January 11, 2024 when the US SEC approved Bitcoin ETF for trading.

The approval of Bitcoin exchange-traded funds (ETFs) further fueled investor enthusiasm and propelled Bitcoin into the realm of traditional finance. These ETFs provide institutional and retail investors with a convenient and regulated avenue to gain exposure to Bitcoin, thereby expanding its investor base and driving up demand.

Bitcoin ETF Holdings | Jan 11 to March 8 2024. Source: TheBlock

As of March 8, 2024, Bitcoin ETF have acquired over 790,000 BTC worth more than $55 billion at the current prices.This evidently emphasizes the role of instutional investors have played in the rally.

While the $70,000 milestone is undoubtedly cause for celebration among Bitcoin enthusiasts, it also raises questions about what lies ahead for the world’s largest cryptocurrency. Some analysts believe that Bitcoin’s price could continue to climb higher as institutional adoption accelerates and global economic uncertainties persist.

Bitcoin (BTC) Price vs. Halving Cycles

However, the next Bitcoin halving scheduled for April 19, is now less than 45 days away. Bullish investors are quick to point out that Bitcoin has hit a new all-time high before each of the last 4 halving cycles. And rightly so.

But its also important to not that Bitcoin and other Proof of Work (PoW) networks have often suffered major post-halving sell-offs. If this ungainly pattern repeats it could put Bitcoin price at risk a major pull-back in the Q2, 2024.

What Could Happen Next ?

Bitcoin Could Face more Regulatory Scrutiny

Bitcoin price rally above $70,000 means that BTC now has a market capitalization of over $1.4 trillion. With over 50 million investor addresses from virtually every country, BTC can be regarded as systemically important asset.

This means that regulatory concerns surrounding cryptocurrency taxation, investor protection, and illicit activities could pose huge challenges that could impact Bitcoin’s future price trajectory.

Despite the uncertainties and challenges ahead, the $70,000 milestone underscores Bitcoin’s resilience and staying power as a transformative force in the global financial landscape. As Bitcoin continues to redefine the boundaries of traditional finance, its journey towards mainstream adoption and widespread acceptance appears to be unstoppable.

About the Author

Ibrahim Ajibadeauthor

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.