Following days of trading that saw the price of Bitcoin hit an all-time high, there was a break in the price increase on Wednesday. It nearly went the other way shortly after the spike to as much as 2.5 percent to USD 69,191.95 at 10 am in New York.
At one time, it was sent for USD 59,317.16, 14% less than the record. At its peak on Tuesday, the price of Bitcoin has increased by over 63% thus far in 2024, outpacing equities worldwide and igniting excitement in the digital asset space.
The latest increases have been attributed to positive wagers placed in the derivatives market, where investors were previously able to get leverage of up to 100 times the size of their positions in products like perpetual futures, according to the cryptocurrency data tracker CoinGlass.
More than USD 800 million worth of bullish bets were swiftly liquidated in the perpetual futures market as a result of Bitcoin reversing its early gains, it said. Exchange-traded funds (ETFs) established by major players in the financial industry, such as BlackRock Inc. and Fidelity Investments, have seen a constant stream of capital flow into them in recent times.
An impending slowdown in the expansion of Bitcoin's supply is clashing with the net influx of about USD 8 billion in less than two months. Although Bitcoin has surpassed the previous milestone established in November 2021, its value dropped to USD 16,500 by 2022.
Due to this, the biggest banks in the US are now purchasing bitcoins with billions of dollars. Tuesday saw a rise in Bitcoin to almost USD 69,200 just after 15:00 GMT, but it then declined and was trading at about USD 62,185 by 21:00 GMT.
