Bitcoin is closing in on its all-time high after surging in price nearly 50 per cent since the start of October.
The cryptocurrency reached above $62,000 on Monday morning, less than $2,000 away from the record high it reached in April.
Following this all-time high, bitcoin suffered a major price crash that saw it tumble below $30,000 in July.
A succession of positive news, including El Salvador adopting it as a legal form of currency in September, has seen bitcoin more than double in price since then.
The latest price rally follows the announcement of the first ever bitcoin futures exchange-traded fund (ETF), which will launch this week on the New York Stock Exchange.
Industry figures describe the launch of a bitcoin ETF as a major milestone for the crypto space that will draw in new investors and stimulate interest in its underlying technology.
“This has not only marked a turning point for the onboarding of institutional investors but is also a clear sign of bitcoin’s maturity,” Paolo Ardoino, chief technology officer of cryptocurrency exchange Bitfinex, told The Independent.
“Bitcoin ETFs may be a significant stimulant for the future of digital token uptake, bringing more investors as well as inspiring the sharing of knowledge within the space. Institutional investors are already driving volumes on exchanges and many expect adoption to skyrocket now that exposure to bitcoin will be so readily available.”
Bitcoin’s price gains have been mirrored by other leading cryptocurrencies, including Ethereum (ether), Binance Coin and Polkadot (DOT), which have all risen by between 5-20 per cent over the last week.
The overall market is now valued at more than $2.5 trillion, meaning it is now worth more than the most valuable companies in the world.
This week’s bitcoin futures ETF is expected to be followed by three other BTC ETFs this month, with some also anticipating other cryptocurrencies to ultimately follow. Each one could conceivably provide a boost to bitcoin’s price.
Some analysts believe bitcoin will continue to climb in price throughout November, before reaching a peak before the end of 2021. One price prediction model puts this peak at $135,000, while others believe it could reach as high as $250,000 in December if previous market patterns are followed.
“A lot of good news has already been price in, although with bitcoin’s all-time high just $2,000 away a fresh attempt to break this is very likely to happen in the short term,” Nicholas Cawley, an analyst at foreign exchange firm DailyFX, told The Independent.
“When these futures-based ETFs are given the green light, the market will soon turn its attention to both Ethereum ETFs and, more importantly, cash-based bitcoin ETFs. If the latter gets approval, there will likely be repeated fresh bitcoin highs over the coming months.”
