Proactive Investors - Bitcoin remained in all-time high territory on Tuesday morning, after surpassing the US$72,000 mark for the first time ever earlier in the week.
At US$72,075, the cryptocurrency had receded from the record US$72,480 mark, holding firm ahead of key consumer price index inflation data from the US later on Tuesday.
“The massive inflows that have been allowed by the introduction of spot exchange-traded funds (ETFs) and the upcoming halving are fueling the actual rally in bitcoin,” Swissquote Bank analyst Ipek Ozkardeskaya commented.
“The bulls are eyeing the US$100,000 mark, I believe we will get there.”
Such ETFs were approved by the Securities and Exchange Commission (SEC) in mid-January and now command over US$56 billion of all bitcoin in circulation, as per Bloomberg.
April’s halving will see the rewards for mining the digital tokens cut in half meanwhile, in the latest bid to limit supply.
“There are signs that a small allocation to alternative asset classes like bitcoin are worthwhile for longer-term investors and institutional investors,” XTB’s Kathleen Brooks added.
“[These] factors, along with a supportive macro backdrop, relatively strong market sentiment and the prospect of interest rate cuts from the Fed are also helping to propel bitcoin higher."