Bitcoin price reached a new all-time high above $69,200 on March 5 after gaining 5% in the previous 24 hours.
The world’s first cryptocurrency rallied over 21% during the past week to shatter the previous all-time high price of $68,990, which was recorded on the Coinbase exchange on Nov. 10, 2021.
The record high follows large inflows from the new spot Bitcoin (BTC) exchange-traded funds (ETFs) in the United States.
The ETFs have introduced passive, price-agnostic demand for Bitcoin, which has fortified its status as a store of value and led to its price appreciation, according to a research report by Bitfinex analysts shared with Cointelegraph.
According to the analysts, the spot ETFs could dampen Bitcoin’s downside volatility after reaching new cycle tops:
Bitcoin ETFs have been an important element of the current rally. By Feb. 15, the Bitcoin ETFs accounted for about 75% of new investment in the world’s largest cryptocurrency as it surpassed the $50,000 mark, according to CryptoQuant research.
Bitcoin ETFs could overtake gold ETFs in assets under management in the next two years, according to a Feb. 26 research report shared by senior Bloomberg analyst Eric Balchunas and associate analyst Andre Yapp.
Despite the new all-time high, Bitcoin could experience significant volatility after the upcoming halving, according to Paul Eisma, head of options trading at XBTO Futures. Eisma told Cointelegraph:
This is a developing story, and further information will be added as it becomes available.