NEW YORK (Reuters) – Bitcoin hit a record high on Tuesday, boosted by investors pouring money into cryptocurrency products traded on a U.S. spot exchange and the prospect that global interest rates could fall.
The world’s largest cryptocurrency hit a high of $69,202, surpassing its November 2021 all-time peak of $68,999.99. Investor interest increased after the Securities and Exchange Commission approved 11 spot Bitcoin ETFs in late January.
DAVID WAGNER, PORTFOLIO MANAGER, APTUS CAPITAL ADVISORS, CINCINNATI, OHIO
“The good results are an indicator of sentiment that risk is rising. Moreover, the Small Cap 600 Leading Index is about as good an indicator of investor sentiment toward speculation as the price of Bitcoin. Both were extreme. indicators of speculative frenzy since mid-January.”
“We’ve been asking more questions about Bitcoin, especially now that there are more efficient and cheaper ways to own Bitcoin following the recent slew of ETF launches. While exploring this opportunity, we settled on IBIT (iShares Bitcoin Trust) and FBTC (Fidelity Wise Origin Bitcoin Fund) as well-known Bitcoin ETFs with high liquidity and attractive expense ratios.”
“A notable difference for investors considering their options is that FBTC, unlike some peers, benefits from Fidelity’s direct custody solution while avoiding the involvement of third-party custodians such as Coinbase (NASDAQ:).”
PHILLIP COLMAR, GLOBAL STRATEGIST, MRB PARTNERS, NEW YORK
“This is a very speculative market. Recent new highs in stocks, especially US mega-caps, new highs in Bitcoin, new highs in gold, etc. are a clear signal that the world is still awash with too much liquidity and does not need the Fed to cut rates.”
JAMIE COX, MANAGING PARTNER, HARRIS FINANCIAL GROUP, RICHMOND, VA
“Cryptocurrency is becoming available to the masses through Bitcoin ETFs and right now you are seeing demand for it causing prices to go vertical. It’s like California real estate on steroids. But I don’t think that says anything about investor sentiment overall, because until there’s a better idea of when the Fed’s first rate cut will happen, you really don’t have many options, and that’s why you see gold going up. , technology is rising and short-term Treasuries are getting bid.”
SERGEY NAZAROV, CO-FOUNDER, CHAINLINK, SAN FRANCISCO, CA
“The price of Bitcoin often reaches new highs that are not just small jumps, but large jumps from previous records. This suggests that we may be at the beginning of a new positive Bitcoin market cycle. When the price of Bitcoin rises, it attracts more capital into the ecosystem, which drives innovation and development in the space.”
STEVE SOSNIK, CHIEF STRATEGIST, INTERACTIVE BROKERS, GREENWICH, CT
“Given Bitcoin’s recent surge and proximity to a record high, a new high seemed almost inevitable, and now its mission is accomplished for crypto enthusiasts. Demand for newly listed ETFs is responsible for the recent run-up, according to conventional wisdom. , activity at our firm shows much more interest in crypto-related stocks like Coinbase and Marathon Digital (NASDAQ:) rather than the ETFs themselves.”
“Bitcoin has essentially been going up for days. This seemed like a push for a record. Once we achieved that, it became normal to see a little profit taking when any asset became so expanded.”
MATTHEW TUTTLE, CHIEF EXECUTIVE OFFICER, TUTTLE CAPITAL MANAGEMENT LLC, Riverside, Connecticut
“Spot ETFs are a game changer because they open Bitcoin up to a whole new group of investors who would never have opened a Bitcoin account anywhere.”
“Nothing goes up in a straight line and Bitcoin will be volatile, but in my opinion that makes it a viable asset class and something to trade or a small part of your portfolio for diversification.”
JEFF KENDRICK, HEAD OF DIGITAL ASSETS RESEARCH, STANDARD CHARTERED
“ETF net inflows now stand at $7.5 billion, and open interest on exchanges (when futures and options are added together) has exceeded the previous 2021 high.”
“I still believe this is a one-off rating review similar to what happened to gold after gold ETFs were introduced in 2004. As a result, I am sticking with my $200K forecast for the end of 2025.”
“U.S. pension money is likely the main driver of ETFs and open exchange retail money.”
STUART COLE, CHIEF ECONOMIST, EQUITI CAPITAL, LONDON
“Bitcoin – and other cryptocurrencies are also performing better – are now seen as more legitimate investment avenues following US regulators’ approval for their inclusion in ETFs. So they are now being used as an alternative to using gold when markets are looking to hedge against increased risks, higher interest rates, etc. So I think it’s not surprising that when you see gold prices rise, cryptocurrencies do the same “
NATHAN McCAULEY, CEO & CO-FOUNDER, ANCHORAGE DIGITAL, SAN FRANCISCO, CA
“Bitcoin’s all-time high marks a turning point for the cryptocurrency. Traditional institutions once sat on the sidelines; today they are here in full force as the main drivers of the cryptocurrency bull market.
“If you want to know why institutions exist in the long run, just look at the underlying economics. Between the emergence of new ETFs and the upcoming halving, demand for Bitcoin is increasing and supply is decreasing.”
“The industry has used the bear market to create a more mature market structure by moving traditional investment vehicles such as SEC-regulated ETFs into cryptocurrency.”
“Now we see exactly what happens when the market has safe, secure and compliant access to an asset class and institutions are just getting started.”
ANTONIE TRENCHEV, CO-FOUNDER, NEXO, ZUG, SWITZERLAND
“Bitcoin returning to its old high of $69,000 inspires a new set of superlatives for the oldest cryptocurrency that continues to divide opinion and captivate all comers with its profitability.
“Bitcoin has broken through its 2021 high thanks to a group of ETFs that are cutting supply, meaning its trajectory looks set to continue to $100,000 and beyond.”
ALVIN TAN, HEAD OF CURRENCY STRATEGY FOR ASIA, RBC CAPITAL MARKETS, SINGAPORE
“One part (of Bitcoin’s rise) is due to the generally positive sentiment towards risk in general. You can see this in the indexes and Nasdaq at record highs. The other part is certainly the institutionalization of interest in Bitcoin through the ETFs that have been launched.”
“Finally, I think after a fairly volatile two-year period where there were a lot of scandals involving crypto exchanges and crypto personalities, we haven’t had any of this for a few months, so we may be seeing the dust settle on this . »
“I’m not entirely sure how to value Bitcoin, but certainly I think the growth over the last couple of months is quite extraordinary. I really don’t know if it’s going to continue at this rate.”