Bitcoin touches new high, climbs above $71,000 mark
What's the story
Bitcoin has soared to a new all-time high, trading at a staggering $71,577 after a significant 2.53% daily increase.
This comes on the heels of a brief dip below $68,000 earlier in the day.
The cryptocurrency's ability to regularly reach new heights, such as the recent $70,000 milestone, showcases powerful underlying support for the ongoing rally.
This is especially important, considering the upcoming halving event is just around the corner.
Reasons
Halving event and historical patterns boost optimism
The much-anticipated halving event, set for April 20 at block 840,000, is predicted to further strengthen Bitcoin's bullish momentum.
During this event, mining rewards shall be slashed from 6.25 BTC ($418,800) to 3.125 BTC ($209,400), effectively slowing down the rate at which new Bitcoin enters circulation.
History has shown that Bitcoin's price typically begins a steady ascent to cross previous all-time highs around four/five months following the halving event, drawing attention as a powerful asset class.
Stats
A look at Bitcoin's growth trajectory
During the last halving event on May 11, 2020, Bitcoin was priced at $8,750.
Later, its value surged by a mind-boggling 430% over five months, reaching $61,300 by the middle of March 2021.
This climb surpassed the earlier all-time high of $19,665, set on December 16, 2017. This also underscored Bitcoin's potential for exponential growth over time.
Factors
These factors influence Bitcoin price movements
Bitcoin's price jump has boosted the token's market capitalization to $1.40 trillion. So far, in 2024, Bitcoin prices have rallied over 67%.
Cryptocurrency prices have been charged by a flood of cash into new spot Bitcoin exchange-traded funds (ETF), and hopes of imminent interest rate cuts by the US Federal Reserve.
Many factors like institutional adoption, regulatory developments, macroeconomic trends, and investor sentiment have influenced Bitcoin price movements.