Will bitcoin soon surpass its all-time high at $69,000?

Faced with its soaring price, bitcoin could reach a new historic high “in the coming weeks”, according to a financial analyst.

Bitcoin is in great shape. At 4:30 p.m. this Tuesday, February 27, the queen of cryptocurrencies is trading above $57,000, gaining 35% in one month, including only 10% since Monday. The asset has caught up with its descent into hell in 2022 and is only 18% behind its historic record reached on November 10, 2021 at $69,000.

Several factors explain this surge. On the one hand, the American stock market watchdog (the SEC) authorized 11 spot bitcoin ETFs on January 10, offered in particular by asset managers like Blackrock and Fidelity. Since then, investors have been flocking to these new products.

Spot bitcoin ETFs have thus “accumulated holdings that represent more than 3% of all bitcoins currently in existence,” underlines Simon Peters, market analyst at Etoro. In this context, “it is possible that bitcoin will reach a new historic high (with a price above $69,000) in the coming weeks,” specifies the latter.

A spectacular increase since the last halving

In addition to the euphoria around bitcoin ETFs, the analyst mentions an event in his sights: the next bitcoin halving, scheduled for April 19. This event consists of halving, every 4 years, the number of new bitcoins put into circulation on the market (as rewards to miners who validate transactions). Over the last three halvings, a reduction in the available supply of new bitcoins has caused the value of the asset to increase.

During the last halving of 2020, 1,314,000 bitcoins were put into circulation over 4 years. There will be no more than 657,000 bitcoins for the next 4 years starting in April. Since May 2020, the price of bitcoin has increased by over 560%.

“While I don’t expect the winning percentage to be as large this time around (as the winning percentage between the halving and the all-time high has declined with each cycle), it is very possible that the peak of the bull market is somewhere in the six figures,” he says.

Despite these optimistic assumptions, the past performance of an asset does not, under any circumstances, guarantee its future results.