Bitcoin hits a new all-time high on Tuesday at $69,170 

According to CoinMarketCap data, as of 9:05 a.m., the asset touched $69,170.63. The previous all-time high was $69,000 and was touched in 2021.

Bitcoin, the digital currency with the largest market capitalization, reached a new all-time high on Tuesday, surpassing the $69,000 it touched in late 2021. According to data from CoinMarketCap, as of 9:05 a.m., the asset rose to $69,170.63.

Bitcoin continues to rise in price because of the growing demand from institutional investors who are injecting capital into exchange-traded funds (ETFs) and also because of expectations for events such as halving.

First, it should be noted that Bitcoin is a deflationary currency, i.e., it is designed to decrease its supply or supply gradually, so any increase in demand boosts its price.

In recent weeks, spot bitcoin ETFs traded on U.S. exchanges have set a record for trading volume. According to Bloomberg Intelligence data, shared on X by Eric Balchunas, senior analyst at Bloomberg Intelligence, more than $500 million is flowing into these funds each trading day, representing direct purchases on bitcoin exchanges.

Currently, these instruments have brought more than $8 billion to the cryptocurrency market, with data updated as of Tuesday.

The analyst also explained in X that the 10 index funds have already surpassed $50 billion in assets and much of that comes from strong gains from the growth of the digital asset,

“All ten spot bitcoin ETFs have surpassed $50 billion in assets…started life 7 weeks ago below $30 billion. Approximately $8 billion is coming from flows, the rest of the value is Bitcoin rising,” Balchunas said.

On the other hand, expectations remain high ahead of halving, a scheduled event that occurs every four years on the Bitcoin network and halves the amount of coins that come to market when a block is mined. In other words, an even greater reduction in supply.

Source: Diario El Salvador