Bitcoin rises to all-time high From Reuters

New York (Reuters) – hit a record high on Tuesday, fueled by investors pouring money into U.S. spot exchange-traded crypto products and the prospect that global interest rates could fall.

The world’s largest cryptocurrency hit a high of $69,202, surpassing its November 2021 all-time high of $68,999.99. Investor interest has surged since the Securities and Exchange Commission approved 11 spot Bitcoin ETFs in late January.

Bitcoin recently fell about 3.3% to $65,310.

ZACH PANDL, HEAD OF RESEARCH, GRAYSCALE INVESTMENTS, NEW YORK, NY

“While the immediate cause of the rally was inflows into U.S.-listed spot bitcoin ETFs, the marginal demand ultimately reflects investor interest in bitcoin’s properties as an alternative “store of value” and decentralized computing network. “

“The positioning of the active bitcoin trader now appears quite long. Valuations of Ether and most other tokens remain below previous crypto cycle highs.”

“If the macro market environment remains favorable, we could see further increases in token valuations, but macro factors could also pose a headwind.”

ART HOGAN, CHIEF MARKET STRATEGIST, B RILEY WEALTH, NEW YORK

“I think the adoption of the new bitcoin spot ETF has clearly been a slow process, but it continues to gain momentum and this probably drives the supply-demand imbalance.”

“Also, I think people involved in bitcoin know that there is a halving process that will happen at the end of April that will probably reduce the supply even more.”

“But I think right now you’re basically seeing a broader acceptance of bitcoin and the ease of use of ETFs driving demand (amidst) what has always been limited supply and that’s really been highlighted this week in the parabolic movement we saw.”

LAITH KHALAF, HEAD OF INVESTMENT ANALYSIS, AJ BELL, MANCHESTER, UK (VIA EMAIL)

“Bitcoin reached a record high today as technology-driven market meltdown continues to accelerate. At times like these investors need to keep “FOMO” in check, especially when it comes to something feverish like cryptocurrencies.

“This may not be the culmination of the current Bitcoin bull market, but anyone buying should be willing to accept the potential downside, especially if the cryptocurrency market ultimately turns out to be the emperor’s new dress.”

“The Bank for International Settlements estimates that around three-quarters of Bitcoin buyers between 2015 and 2022 were likely to lose money, despite a huge rise in the cryptocurrency’s price, almost certainly because they were duped at just the wrong time.”

TAI WONG, INDEPENDENT METALS DEALER, NY

“The primary driver behind bitcoin was the SEC’s approval of the bitcoin spot ETF and the significant inflows that resulted. Rising stock markets and corresponding overall bullish sentiment also helped.”

“After a brutal winter, crypto bulls are finally taking their time. The crypto rally seems a bit excessive and looking for a pullback to me. Another case, though, where you should just be flat or long because a short position, especially with leverage, can be carried out and be absolutely right.”

BRIAN DOBSON, Managing Director, CHARDAN CAPITAL MARKETS

“This is a short-term event, but in the short term there is buying pressure from ETFs pushing Bitcoin higher. On the corporate side, there are also dilution concerns in some of these crypto-oriented stocks which are limiting performance in the short term, but over time I would expect this to correct itself.”

MARK CONNORS, DIRECTOR OF RESEARCH, 3IQ, HOBOKEN, NJ

“This is the first time an all-time high has been reached before the halving – for me this is the main point when considering how this cycle could be different. The impact of the approval of spot Bitcoin ETFs on January 10th will it is still spreading through the system.”

“The demand for Bitcoin is much greater than in the past, so (demand) will be the main driver of the price. The halving will have a smaller impact because the demand is very high, not only from ETFs but also, for example, soon, from pension funds.”

DAVID WAGNER, PORTFOLIO MANAGER, APTUS CAPITAL ADVISORS, CINCINNATI, OH

“Bitcoin’s strong performance is a sentiment indicator that a risk appetite rally is occurring. Not only that, but the Small Cap 600 that it outperformed is as good an indicator of investor sentiment towards speculation as it has been the price of bitcoin. Both have been extreme indicators of speculative frenzy since mid-January.”

“We have answered many questions about Bitcoin, especially now that there are more efficient and cost-effective ways to own Bitcoin following the recent launch of ETFs. In our exploration of the opportunity, we identified IBIT (iShares Bitcoin Trust) and FBTC (Fidelity Wise Origin Bitcoin Fund) as important Bitcoin-related ETFs, characterized by solid liquidity and attractive expense ratios.”

“A notable differentiator for investors evaluating their options is that FBTC, unlike some counterparts, benefits from Fidelity’s direct custody solution, avoiding the involvement of third-party custodians like Coinbase (NASDAQ:).”

PHILLIP COLMAR, GLOBAL STRATEGIST, MRB PARTNERS, NEW YORK

“It’s a very speculative market. The recent new highs in stocks, especially US mega caps, new highs in Bitcoin, new highs in gold, etc., are a clear message that the world is still filled with too much liquidity and does not need price cuts. Fed rates”.

JAMIE COX, MANAGING PARTNERS, HARRIS FINANCIAL GROUP, RICHMOND, VA

“Cryptocurrencies are becoming available to the masses through bitcoin ETFs and right now you’re seeing the demand for them, which is causing the price to just go vertical. It’s like California real estate on steroids. But I don’t think that says anything on investor sentiment in general, because until there’s a better idea of ​​when the first Fed rate cut is coming, you’re not going to have a lot of options, and that’s why you see gold going up, tech going up, and stocks going up. Short-term treasuries receive a bid.

SERGEY NAZAROV, CO-FOUNDER, CHAINLINK, SAN FRANCISCO, CA

“Bitcoin price frequently hits new highs that are not just small bumps, but big leaps beyond previous records. This suggests that we may be at the beginning of a new positive market cycle for Bitcoin. When the price of Bitcoin rises, it attracts more capital into the ecosystem, which fuels innovation and development within the space.”

STEVE SOSNICK, CHIEF STRATEGIST, INTERACTIVE BROKERS, GREENWICH, CT

“Considering bitcoin’s recent rise and proximity to a record high, a new high seemed almost inevitable and now its mission accomplished for crypto enthusiasts. Demand for newly listed ETFs is the reason for the recent rally according to conventional wisdom However, our firm’s activity shows much more interest in cryptocurrency-related stocks like Coinbase and Marathon Digital (NASDAQ:) rather than the ETFs themselves.”

“Bitcoin essentially went higher for several days. It looked like a push to a record. Once you get to that level, it’s normal to see a little bit of profit taking when an asset gets that extended.”

MATTHEW TUTTLE, CEO, TUTTLE CAPITAL MANAGEMENT LLC, RIVERSIDE, CONNECTICUT

“Spot ETFs are a game changer as they open up Bitcoin to a whole new group of investors who would never open a Bitcoin account somewhere.”

“Nothing goes up in a straight line and Bitcoin will be volatile, but that makes it a viable asset class in my opinion and something that should be traded, or a small part of your portfolio for diversification.”

GEOFF KENDRICK, HEAD OF DIGITAL ASSET RESEARCH, STANDARD CHARTERED

“ETF inflows are now net $7.5 billion and open interest on trades (when adding futures and options together) has surpassed previous 2021 highs.”

“I still think this is a one-off revaluation similar to what happened with gold after the introduction of gold ETFs in 2004. As a result I am sticking with my $200,000 forecast for the end of 2025.”

“US pension money is probably the main driver of ETFs and retail money of foreign exchange open interest.”

STUART COLE, CHIEF ECONOMIST, EQUITI CAPITAL, LONDON

“Bitcoin – and indeed other cryptocurrencies are performing better too – are now seen as more legitimate investment destinations after US regulators approved their inclusion in ETFs. Therefore, they are now used as an alternative to using gold when markets are trying to protect themselves from increased risks, higher interest rates, etc. So it’s no surprise, I think when you see the price of gold rally, cryptocurrencies are doing the same.

NATHAN MCCAULEY, CEO & CO-FOUNDER, ANCHORAGE DIGITAL, SAN FRANCISCO, CA

“Bitcoin’s all-time high marks a turning point for cryptocurrencies. Traditional institutions had once remained on the sidelines; today they are here in full force as the main drivers of the cryptocurrency bull market.

“If you want to know why institutions are here for the long term, just look at the underlying economy. Between the new ETFs and the upcoming halving, demand for Bitcoin is increasing while supply is decreasing.”

“The industry has used the bear market to build a more mature market structure, bringing traditional investment vehicles, such as SEC-regulated ETFs, into the cryptocurrency world.”

“Now, we are seeing exactly what happens when the market has safe, secure and compliant access to this asset class, and institutions are just getting started.”

ANTONI TRENCHEV, CO-FOUNDER, NEXO, ZUG, SWITZERLAND

“Bitcoin recapturing its old high of $69,000 inspires a new set of superlatives for the oldest cryptocurrency that continues to divide public opinion and win over everyone else with its returns.

“Bitcoin has been pushed past its 2021 high by a group of ETFs that are squeezing supply, meaning its trajectory looks set to continue towards $100,000 and beyond.”

ALVIN TAN, HEAD OF ASIAN FX STRATEGY, RBC CAPITAL MARKETS, SINGAPORE

“Part of Bitcoin’s rally has to do with generally positive sentiment around risk in general. You can see it in the all-time highs of the and the Nasdaq. The other part is definitely the institutionalization of interest in Bitcoin through the launched ETFs.”

“Finally I think after a pretty volatile two year period where there were a lot of scandals about crypto exchanges and crypto personalities, we haven’t had any of that for a few months, so maybe we’re seeing the dust settle on this. “

“I’m not entirely sure how you would value bitcoin, but I certainly think the rally over the last couple of months is pretty extraordinary. I really don’t know if it will continue at this rate.”