- Bitcoin (BTC) just hit a historic price today as it recorded a new all-time high of $69,170.63.
- The rush to the top immediately triggered a retracement for the digital asset down to $65K in just an hour.
- Is Bitcoin’s rally over?
Bitcoin’s Rise to $69K
After falling short of just a few dollars from breaching the coveted $69K barrier earlier, Bitcoin finally crossed the line to log a new historical peak. However, prices suddenly dropped to the $65K range as an influx of sellers took over the market within an hour.
As of this writing at 4:00 PM UTC, Bitcoin is now trading with over 2% loss in its price over the 24-hour chart. The recent price action indicates a new low for the day, which could signal a temporary correction for the market.
Is Bitcoin Done For?
The latest movement of Bitcoin is definitely another “sell the news” affair as a lot of investors and traders are now likely scooping up their profits from an anticipated event. However, as the fourth halving of BTC is still 44 days away, this will most probably be on a short-term basis.
The real score within BTC anyway not in its short-term price swings, but rather in its capacity to accumulate value over time. As the Bitcoin mining rewards are about to get cut from 6.25 BTC per block to 3.125 BTC by mid-April, a tighter supply for the digital asset will really be felt by the market.
The premier crypto asset’s scarcity will be further amplified by the non-stop hoarding of financial institutions. Last Tuesday’s trading day alone, spot Bitcoin exchange-traded funds (ETFs) once again exhibited a large amount of inflows totaling $562 million. It marked the third-largest inflows for these financial instruments in the US since they were greenlit by the Securities and Exchange Commission (SEC) on January 11.
With BTC’s daily production pegged at an average of 900 daily, analysts believe that the massive demand created by spot Bitcoin ETFs could eventually overwhelm its circulating supply. And the coming halving will only catalyze an all-new level of shortage for it.
Adding fuel to the fire is the bleak outlook on major global economies like the US and China. The US, in particular, is in a critical spot right now because it is estimated to be growing its debt by $1 trillion every 100 days.