Bitcoin price all-time high of $69,000 following SEC approvals driving $7 billion in investments

Bitcoin achieved a new all-time high on Tuesday, surpassing $69,000 and surpassing its previous peak of $68,991.85 recorded in 2021. Following a decline in 2022 amid a cryptocurrency industry crash, Bitcoin began its resurgence in early 2023. The recent record-breaking price is attributed in large part to the US Securities and Exchange Commission (SEC) approving spot Bitcoin exchange-traded funds (ETFs) in January. These approvals resulted in over $7 billion flowing into various Bitcoin investment products within a span of two months.

The SEC's approval of ETFs offered by reputable financial institutions such as BlackRock and Fidelity has made Bitcoin more appealing to those interested in cryptocurrency but wary of directly owning or understanding the technology. Investors can now purchase shares in collections of digital assets with SEC-mandated protections against fraud or manipulation.

Traditional institutions, once hesitant, are now major contributors to the crypto bull market, according to Nathan McCauley, CEO and co-founder of Anchorage Digital. The surge in demand for Bitcoin investment products could potentially drive its value to around $500,000, analysts suggest. Meanwhile, the available supply of Bitcoin is expected to decrease during an upcoming halving event on April 19, a cyclical occurrence happening approximately every four years.

Despite historical trends indicating price rises around halving events, the current spike in Bitcoin prices differs from the months preceding previous halvings. The SEC's unexpected role in facilitating the crypto industry's recovery from a challenging period is noted as an ironic twist. Some analysts had predicted that ETFs would propel Bitcoin to new heights.

The surge in interest isn't limited to Bitcoin, as prices of other cryptocurrencies like Ether, Solana, and Dogecoin have also risen in 2024. The possibility of the SEC approving investment products tied to other cryptocurrencies has fueled this increased interest. While SEC Chair Gary Gensler has expressed caution about Bitcoin's volatility and its association with illicit activities, the recent approvals suggest a cautious yet evolving stance toward cryptocurrency within the regulatory framework.