Bitcoin soared by as much as 6.8% to reach a session high of $67,645, bouncing back from a 6% decline on Tuesday
Bitcoin experienced another rally on Wednesday in volatile trading, while ether surged nearly 10%, continuing the ongoing crypto frenzy within the investment community.
Bitcoin soared by as much as 6.8% to reach a session high of $67,645, bouncing back from a 6% decline on Tuesday after hitting a previous record high above $69,000. It was last trading up 5.7% at $66,896.
Meanwhile, ether surged by 9.8% to its highest level since January 2022, reaching $3,827 and marking an 8.6% increase.
Bitcoin has already seen a 55% surge since the beginning of the year, driven by investors pouring funds into U.S. spot exchange-traded crypto products and the anticipation of potential global interest rate decreases.
Lennix Lai, global chief commercial officer at OKX crypto exchange, noted that the market is receiving additional support from the outlook, which includes an upcoming ethereum upgrade and the bitcoin “halving” that slows the minting of new bitcoins.
The approval of 11 spot bitcoin ETFs by the U.S. Securities and Exchange Commission in late January marked a significant turning point for the industry, following an 18-month-long crypto winter marked by several high-profile corporate bankruptcies and scandals.
Even institutional investors, who previously avoided crypto due to its volatility, have started committing long-term investments, potentially bolstering the current rally, according to experts.
The optimism surrounding bitcoin has spilled over to other digital tokens, notably ether, which has surged by over 60% since the beginning of the year.
However, some analysts caution about the speculative nature of these assets. After reaching a record high on Tuesday, bitcoin sharply reversed course, dropping more than 10% below the $60,000 level.
Matt Simpson, senior market analyst at City Index, described this as “classic bitcoin behavior,” suggesting that the market might be entering a volatile and erratic phase typically seen after reaching record highs.
Deutsche Bank strategist Jim Reid pointed out that bitcoin is still some distance away from its all-time high in real terms adjusted for inflation.
“Consumer prices have risen by over 10% since the previous peak in November 2021, so in real terms, that would be above $75,000 in today’s prices,” Reid said.
