Bitcoin’s price has reached an all-time high, topping $65000. Supposing this increase was solely due to the recent SEC ruling on Bitcoin ETFs, investors should consider whether other factors could be at play for cryptocurrency prices.

Bitcoin has reached a new all-time high, surpassing $66,000. The cryptocurrency’s price has increased by more than 1,700% in the last year. Read more in detail here: bitcoin price all time high.

Bitcoin struck a new high on Wednesday, fueled by a surge of purchasing after the first cryptocurrency-linked exchange-traded fund began trading in the United States.

According to CoinDesk, bitcoin reached a high of $66,974.77 on Wednesday, surpassing the previous high of $64,889 established in April. It plummeted to a low of $29,608.60 in July before surging back thanks to a slew of events signaling the digital currency’s transition from the murky outskirts of the investment world to the mainstream.

The latest was the Securities and Exchange Commission’s clearance of the first bitcoin-focused ETF, which started trading Tuesday and surged 5% in its first day. The session saw about $1 billion worth of shares exchanged, making it the second-highest volume ETF launch ever.

The new fund, which invests in bitcoin futures contracts rather than actual coins, makes it simpler for regulated institutions to get exposure to bitcoin and the larger crypto market.

“Crypto is gaining traction as an investment vehicle, and the introduction of ETFs might be a huge step forward,” said Lindsey Bell, chief investment strategist at Ally Invest. According to her, the fund’s movements may not precisely reflect bitcoin price swings, making the ETF a poor proxy for investors.

In the next weeks, several bitcoin futures ETFs are likely to begin trading. According to Hong Fang, the CEO of crypto exchange OKCoin, they should provide a new entry point into the crypto market for investors who have been “long discouraged by regulatory uncertainty and risk” of purchasing bitcoin directly.

El Salvador became the first country in the world to embrace bitcoin as its official currency, enabling citizens to pay for common items using a digital wallet. This is how the poor country’s dangerous experiment looks. Getty Images/Marvin Recinos/Agence France-Presse

While bitcoin may be used as cash in certain countries, such as El Salvador, where it was recently proclaimed legal tender, its appeal is almost completely as a speculative financial investment. It’s a hit with the meme-obsessed, Reddit-obsessed community of younger investors, who regard cryptocurrencies like bitcoin and the joke-inspired dogecoin as a path to riches and a jab at the financial establishment.

Bitcoin’s price, like that of other craze investments, has been very erratic. According to CoinDesk, it began trading at less than $12,000 a year ago, rode the $30,000 level in January, soared beyond $64,000 in April, and then plunged by more than half through July. The price of bitcoin has been impeded in recent months by a crackdown by China on bitcoin, as well as increased regulatory scrutiny surrounding digital assets and persons profiting from gains.

Alternative.me keeps track of bitcoin’s “fear and greed” index, which combines price movements, trade volumes, and social media and search patterns. The measure was 82 out of 100 on Wednesday, signifying “severe greed.”

Bitcoin-Price-Surges-Past-66000-Reaching-New-High

On Tuesday, the New York Stock Exchange debuted the first bitcoin-focused exchange-traded fund in the United States.

BRENDAN MCDERMID/REUTERS/BRENDAN MCDERMID/REUTERS/BRENDAN MCDERMID/REUT

Despite the recent rise and surge in popularity, uncertainties remain regarding bitcoin and cryptocurrencies in general, according to UBS analyst Mark Haefele. Regulatory risk remains, he added, and cryptocurrencies’ rapid price fluctuations give them a “questionable value” as a tool to mitigate portfolio risk.

At the same time, authorities have begun to shift their focus away from bitcoin and onto fast-growing decentralized finance initiatives and stablecoins, according to John Patrick Mullin, co-founder of decentralized finance platform Mantra Dao. According to the Wall Street Journal, the Biden administration is examining methods to put bank-like supervision on cryptocurrency firms that produce stablecoins, digital currencies that combine the speed of bitcoin with the stability of the dollar.

Institutions will take time to purchase into bitcoin now that it has been legitimized by the ETF listing, since they need to get customers on board and maybe change their mandates, according to Chris Bendiksen, bitcoin research head at London-based asset management company CoinShares.

“This is going to be a long process,” he said. “We might break through all-time highs, but I doubt there will be a price explosion right now.”

Cryptocurrency Markets: Bitcoin, Dogecoin, and Tether

Paul Vigna, Elaine Yu, and Caitlin Ostroff may be reached at [email protected], [email protected], and [email protected], respectively.

Dow Jones & Company, Inc. All Rights Reserved. Copyright 2021 Dow Jones & Company, Inc. 87990cbe856818d5eddac44c7b1cdeb8

The “bitcoin price chart” shows that the bitcoin price has been reaching new highs. The cryptocurrency reached a high of $66,000 on November 28th, 2018.

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