By
Temitope Olatunji
April 26th, 2024
Bitcoin (BTC) has set a new ATH, hitting $66,000. Several fundamentals have combined to take Bitcoin to the point where it is today.
Bitcoin (BTC), the world’s largest digital currency by market capitalization has lived up to its name as a market leader, as it crossed its previous All-Time High (ATH) price to print a new one as investor sentiment heightens. At present, the cryptocurrency is trading at an intraday high of $66,930, atop a 7.65% growth in the past 24 hours.
There is a high level of volatility surrounding the digital currency, as more retail investors seek to catch up with the price uptrend. The impressive growth leap of Bitcoin is not unexpected, as the world witnessed the first-ever Bitcoin-linked Exchange Traded Fund (ETF) product go live on the New York Stock Exchange (NYSE) yesterday. The massive rally comes as North Americans wake up to the reality of ProShares’ impressive performance upon debut.
The ProShares Bitcoin ETF trades under the ticker symbol ‘BITO’ and it tracks bitcoin futures, and not the digital currency itself. However, investors believe this could be a major step in not just achieving the approval of a full-fledged Bitcoin ETF product in the US, but for other altcoins to trail a similar path in the overall goal of driving adoption of the cryptocurrency industry.
Several fundamentals have combined to take Bitcoin to the point it is today. More institutional investors are beginning to stack up the digital currency on their balance sheet, with business intelligence and software firm, MicroStrategy Incorporated (NASDAQ: MSTR), Tesla Inc (NASDAQ: TSLA), and recently, Chainalysis coming off as prominent names in this regard.
The backing of institutional investors that fueled the growth of BTC also extends beyond Bitcoin purchases. The industry is seeing a growing number of service providers incorporating crypto payments, more miners are expanding their capacities, and Bitcoin also became a legal tender in El Salvador, a nation in Central America. These fundamentals and more are responsible for the overall growth of Bitcoin, and the industry as a whole.
Bitcoin at ATH: Surviving FUD and Charting New Growth Course
The journey to ATH was at best described as a daunting one for Bitcoin, as the cryptocurrency experienced more Fears, Uncertainties, and Doubts (FUD) that upset investors for the better part of the year.
Amongst the most concerning challenges the digital currency faced was the crackdown by Chinese authorities. While miners were sent packing back in June, the People’s Bank of China (PBoC) weeks ago reiterated the fact that all digital currency transactions in the country are illegal and will attract sanctions. This move forced cryptocurrency exchanges including Binance, and Huobi to stop servicing customers from mainland China.
The overall concern about Bitcoin’s energy use in mining activities was also a major concern, however, miners are now beginning to allay these concerns by investing in renewable energy options.
Surviving the broad FUD the market experienced has given Bitcoin investors a new level of confidence, as showcased by the current ATH figure. With this new milestone, Bitcoin is now at a point where it can make new price discoveries, although, a few pushbacks may be seen along the way.