Bitcoin rises to record high By Reuters

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

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

Bitcoin was last down around 3.3% at $65,310.

ZACH PANDL, Director of Research at GRAYSCALE INVESTMENTS, NEW YORK, NY

“Although 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.”

“Bitcoin traders’ active positioning now appears to be quite long. Valuations for Ether and most other tokens remain below their highs from the previous crypto cycle.”

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

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

“I think the launch of the new spot Bitcoin ETF has clearly been a slow process but continues to gain momentum and that is likely leading to this supply and demand imbalance.”

“Also, I think people involved with Bitcoin know that there is a halving process happening at the end of April, which will likely reduce supply even further.”

“But I think right now you’re basically seeing broader adoption of Bitcoin and the ease of use of ETFs driving demand (amid what has always been limited supply), and that’s been demonstrated this week in the parabolic move we’ve seen , really clear.”

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

“Bitcoin hit a record high today as the tech-driven market meltdown continues to gain momentum. In times like these, investors need to keep the “FOMO” in check, especially when it comes to something as sensitive as crypto.

“This may not be the peak of the current Bitcoin bull market, but anyone jumping in should be prepared to accept the potential downside, especially if the crypto market ultimately proves to be the emperor’s new robe.”

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

TAI WONG, INDEPENDENT METAL DEALER, NY

“The main reason for Bitcoin was the SEC approval of the spot Bitcoin ETF and the resulting significant inflows. Rising stock markets and the corresponding general bullish sentiment have also helped.”

“After a brutal winter, crypto bulls are finally having their time in the sun. To me, the crypto rally feels a bit overextended and awaits a pullback. However, there is another case where one should only be flat or long because a short, especially leveraged, can be implemented and ultimately be right.

BRIAN DOBSON, MANAGING DIRECTOR, CHARDAN CAPITAL MARKET

“This is a short-term event, but in the short term there is buying pressure from the ETFs that are driving Bitcoin higher. There are also concerns among companies about the dilution of some of these crypto-focused stocks limiting short-term performance, but over time I would expect that to correct itself.

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

“This is the first time an all-time high has been reached before the halving – that is the most important takeaway for me as I think about how this cycle could be different.” The impact of the (spot Bitcoin ETFs) approval from January 10 is still impacting the system.”

“Bitcoin demand is so much greater than it has been in the past, so (demand) will be the main driver of price. The halving will have less impact because there is so much demand, not just from ETFs but soon from pension funds, for example.”

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

“A good Bitcoin performance is a sentiment indicator that a risk-on rally is taking place. Additionally, the outperforming Small Cap 600 is about as good an indicator of investor sentiment toward speculation as the Bitcoin price. Both have been the case.” extreme signs of speculative mania since mid-January.”

“We’ve been answering more real-world questions about Bitcoin, especially now that there are more efficient and cheaper ways to own Bitcoin following the recent series of ETF launches. In our investigation of the opportunity, we accurately identified IBIT (iShares Bitcoin Trust) and FBTC (Fidelity Wise Origin Bitcoin Fund) as prominent Bitcoin-related ETFs that stand out for their robust liquidity and attractive expense ratios.”

“A notable differentiator for investors weighing their options is that, unlike some competitors, FBTC benefits from Fidelity’s direct custody solution and avoids the involvement of third-party custodians such as 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 signal that the world still has too much liquidity and does not need interest rate cuts from the Fed.”

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

“Crypto is becoming accessible to the masses through Bitcoin ETFs and you are currently seeing demand for it that is driving the price almost vertically. It’s like California real estate on steroids. But I don’t think it says anything about investor sentiment overall, because until you have a better sense of when the Fed’s first rate cut is going to happen, you really don’t have a lot of options, which is why gold prices are going up, technology is going up, and short term Government bonds receive an offer.”

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

“The price of Bitcoin often reaches new highs that are not just small bumps, but large jumps 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, driving innovation and development in this space.”

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

“Given Bitcoin’s recent meteoric rise and proximity to a record, a new high seemed all but inevitable and now its mission is accomplished for crypto enthusiasts. Demand for the newly listed ETFs is widely believed to be the reason for the recent increase. However, “Our company’s activities indicate much greater interest in crypto-related stocks like Coinbase and Marathon Digital (NASDAQ:) than in the ETFs themselves.”

“Bitcoin has essentially been rising steeply for several days. It seemed like a record shot. Once we get there, it’s normal for there to be some slight profit-taking when an asset gets that big.”

MATTHEW TUTTLE, CHIEF EXECUTIVE OFFICER, TUTTLE CAPITAL MANAGEMENT LLC, RIVERSIDE, CONNECTICUT

“Spot ETFs are a game-changer as they bring Bitcoin to a whole new group of investors who would never set up a Bitcoin account anywhere.”

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

GEOFF KENDRICK, HEAD OF DIGITAL ASSETS RESEARCH, STANDARD CHARTERED

“ETF inflows are now net at $7.5 billion and open interest on exchanges (counting futures and options) has surpassed previous highs set in 2021.”

“I continue to think this is a one-off revaluation, similar to what happened with gold following the launch of gold ETFs in 2004. Therefore, I stand by my forecast of $200,000 for the end of 2025.”

“U.S. retirement funds are likely to be the primary driver of retail ETFs and open-ended FX funds.”

STUART COLE, CHIEF ECONOMIST, EQUITI CAPITAL, LONDON

“Bitcoin – and indeed other cryptocurrencies are performing better – are now seen as more legitimate investment targets after US regulators approved their inclusion in ETFs. Therefore, they are now used as an alternative to using gold when markets seek a hedge against increased risks, higher interest rates, etc. So no wonder I think cryptos do the same thing when you see the price of gold go up.”

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

“Bitcoin’s all-time high marks a turning point for crypto. Traditional institutions used to sit still; Today they are here in full force as the main driver of the crypto 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 used the bear market to build a more mature market structure and introduce traditional investment vehicles – such as SEC-regulated ETFs – into the crypto world.”

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

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

“Bitcoin’s recapture of its old high of $69,000 inspires a new set of superlatives for the oldest cryptocurrency that continues to divide opinion and conquer all comers with its returns.”

“Bitcoin has been pushed past its 2021 peak by a number of supply-tightening ETFs, and that means its trajectory is expected to continue towards $100,000 and beyond.”

ALVIN TAN, Head of ASIA FX STRATEGY, RBC CAPITAL MARKETS, SINGAPORE

“Part of (the Bitcoin rally) has to do with generally positive risk sentiment in general. You can see this in the all-time high of the and the Nasdaq. The other part of this is definitely the institutionalization of interest in Bitcoin through the ETFs that are being launched.”

“In conclusion, I think that after a fairly volatile period of two years, during which there were a lot of scandals surrounding crypto exchanges and crypto personalities, we haven’t had any of that for a few months, so maybe we’ll see the dust settle on that lays. ”

“I’m not entirely sure how one would value Bitcoin, but I definitely think the rise over the last few months is pretty extraordinary. I really don’t know if things will continue at this pace.”