Bitcoin Hits Record High Above $71,000, Ethereum Surges to $4,000 in 2 Months
Bitcoin (BTC) surged to an all-time high of $71,000 on Monday, March 11. Since receiving approval in the US on January 11 for the first-ever spot Bitcoin exchange-traded fund (ETF) two months ago, it has seen consistent growth.
At the time, Bitcoin was priced at around $46,000, marking a 54% increase in its value. The impact of Bitcoin’s surge is being felt across the entire crypto market, with the second-largest cryptocurrency Ethereum (ETH) also reaching $4,000.
Four Reasons Behind Bitcoin’s Rise
- Positive sentiment for cryptocurrencies has grown since the introduction of the Spot Bitcoin ETF.
- The Bitcoin halving event could occur in April 2024, leading to a decrease in Bitcoin’s supply.
- Investors believe that the economy stabilizing could prompt the Federal Reserve to raise interest rates.
- Concerns within the US banking sector have shifted attention to decentralized finance.
The future of crypto remains uncertain, necessitating caution in investments. While retail investors can benefit from diversifying their portfolios in the current situation, caution is advised.
Bitcoin and Ethereum Operate on Blockchain
Both Bitcoin and Ethereum utilize blockchain technology. Bitcoin, the world’s first cryptocurrency, was introduced in 2009 by an anonymous developer, Satoshi Nakamoto, for a peer-to-peer cash system.
Ethereum, launched six years later in 2015, was founded by Vitalik Buterin to address shortcomings in Bitcoin.
