It happened again. Bitcoin price exceeded $70,000 for the first time since June.
The largest cryptocurrency by market capitalization rose 3% on the day to $70,100, according to CoinGecko data.
This asset rally comes as investors are turning their attention back to newly approved exchange-traded funds (ETFs), offering a regulatory boost to institutional investors who were previously too cautious to buy assets on exchanges. This will provide an avenue for exposure to cryptocurrencies.
Investors poured billions of dollars into new investment vehicles this month following a hiatus earlier this year.
These products are so popular that they sold more than $20 billion this year. BlackRock’s iShares Bitcoin Trust has been the most successful of the 10 instruments to date.
In March, just two months after the Bitcoin ETF was approved, Bitcoin hit an all-time high of $73,737.
The asset subsequently struggled amid geopolitical tensions in the Middle East and uncertainty over the US Federal Reserve’s response to historically high interest rates.
However, central banks decided to cut interest rates last month, and investors are once again turning to “risk-on” assets like Bitcoin (such investments are better off in a low interest rate environment, because (Because it’s cheaper to borrow money.)
Bitcoin isn’t the only thing rising. The price of Ethereum also skyrocketed today and is currently at $1,000.
And Dogecoin, which was revived this week following comments from the world’s richest man, Elon Musk, was the biggest single-day winner. The asset, whose logo features a Japanese hunting dog, rose more than 13% to $0.16.
Edited by Sebastian Sinclair
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