Bitcoin has once again surged, recovering 5% after a temporary dip from its recent all-time high, showcasing the resilience of bullish sentiments and global market factors.
During the Asian trading session, Bitcoin reached an intraday peak of $66,540, a mere distance from the record high set on Tuesday at $69,202. The cryptocurrency is currently 4% higher, resting at $65,946.
Bitcoin’s remarkable rally, boasting a 55% surge for the year, is attributed to increased investment in U.S. spot exchange-traded crypto products and the anticipation of a potential decline in global interest rates.
Lennix Lai, the global chief commercial officer at crypto exchange OKX, attributes the ongoing trend to the approval of 11 spot bitcoin ETFs by the U.S. Securities and Exchange Commission in January. This development marked a significant shift for the industry, following an 18-month crypto winter characterized by corporate bankruptcies and scandals.
Institutional investors, traditionally wary of Bitcoin’s volatility, are now joining the fray with long-term commitments, potentially contributing to the sustainability of its current rally.
The positive sentiment extends beyond Bitcoin, influencing its counterparts. Ethereum, the second-largest cryptocurrency, has also witnessed a surge of over 60% for the year, currently standing at $3,750.
Despite the optimism, the speculative nature of these digital assets remains a point of contention. After hitting the record high on Tuesday, Bitcoin experienced a sharp reversal, dropping over 10% below the $60,000 level.
Matt Simpson, senior market analyst at City Index, describes this behavior as “classic bitcoin” — a blend of surges and retracements that characterize the volatile and erratic phase seen when approaching record highs.