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⚡Bitcoin Shatters Records🏌️

Croxroad

06 Mar 2024 — 4 min read

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🎯 Bitcoin Breaks Records

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 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.

“Our analysis forecasts a conservative price objective of $100,000-$120,000 to be achieved by Q4 2024, and the cycle peak to be achieved sometime in 2025 in terms of total crypto market capitalization.”

According to the analysts, the spot ETFs could dampen Bitcoin’s downside volatility after reaching new cycle tops:

“The fact we now have ETFs potentially means that any decline following the top of the current cycle could be less drastic than previous downturns. We saw a similar stable trajectory in price after a huge increase following the launch of gold ETFs.”

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:

“The crypto ecosystem, for the first time, will have simultaneous pressure from the halving’s deflationary supply impact as well as the still ongoing demand shock from the ETFs. […] The options market December 2024 at-the-money forward break-evens are currently pricing in a range of $55,000–$85,000, with implied volatility around 65%.”

👃 Bitcoin's Euro Nose Dive

Bitcoin (BTC) faced a significant setback as it lost 23.7% of its value against the euro on Coinbase (COIN) during a bout of high volatility. This plunge followed the cryptocurrency's remarkable surge to a record U.S. dollar high of $69,325.

On Coinbase, BTC experienced a momentary freefall, dropping from €60,000 to €48,529. In contrast, on Kraken, the price only dipped as low as €58,400. The flash crash's cause remains elusive, and it took approximately 10 minutes for the price to rebound and align with other exchanges.

Flash crashes are often associated with various scenarios, one of which involves a lack of liquidity. This occurs when the volume of market sell orders surpasses the number of resting buy orders on the order book, forcing the price to plummet to the nearest point with sufficient bids. Another potential factor, witnessed in a 2021 flash crash on Binance.US, is a bug or mistake made by a trader or algorithm, colloquially known as a "fat finger" trade.

The discord in euro trading pairs emerged shortly after Bitcoin reached a new record high in U.S. dollar terms at $69,325. Within minutes, however, the cryptocurrency reversed its gains, sliding below $64,000 at one point. This abrupt and unexplained fluctuation underscores the inherent risks and uncertainties within the volatile cryptocurrency market.

📶 Connectivity and Ubiquity

Web 3.0 is poised to revolutionise the way we interact with information and content. In this paradigm, connectivity and ubiquity will be the key features, as data becomes seamlessly accessible through multiple applications and an expanding array of everyday devices connected to the web. A prime illustration of this transformative shift is the advent of the Internet of Things (IoT).