After two years of a violent bear market, Bitcoin has shattered its previous all-time high, surpassing $69,000, largely driven by Wall Street’s growing interest in new US-based Bitcoin Spot ETFs.
A New Era for Bitcoin
After reaching its peak during the last bull market nearly two and a half years ago, Bitcoin has finally broken through a new threshold, setting a record at $69,300. This achievement marks a crucial moment for Bitcoin, which, since November 2021, had seen its momentum wane, entering a long period of decline known as the crypto winter.
A Short Price Discovery Phase Before a Correction
This breakthrough has plunged Bitcoin into a price discovery phase, uncharted territory where previous levels of support and resistance no longer apply. This uncertain situation has led to varied speculations about the future direction of the market, with short-lived excitement as the BTC price quickly reversed to fall below $68,000.
The ETF Factor in Bitcoin Euphoria
On February 27, Bitcoin experienced a dramatic 25% surge, surpassing $60,000. This sudden jump caught many traders betting on a decline off guard, resulting in the liquidation of $160 million worth of short positions in just 24 hours.
This short squeeze played a key role in the price rally, as short sellers were forced to buy back Bitcoin at a higher price to cover their positions, accelerating the price surge.
The approval of Bitcoin Spot ETFs by the US Securities and Exchange Commission marked a turning point. Since their launch, funds in these financial products have continued to grow. On March 1, BlackRock’s iShares Bitcoin Trust surpassed $10 billion in assets under management in just seven weeks, a record growth rate in the field.
