Bitcoin briefly kisses $70,000 in volatile trading

Bitcoin hits new high of $70,000 but quickly retreats in volatile trading session.

Bitcoin briefly kisses $70,000 in volatile trading
Bitcoin

Bitcoin continued its wild ride on Friday, momentarily touching $70,000 for the first time. This milestone has been fueled by a confluence of factors, including increased investor interest in new U.S. spot Bitcoin exchange-traded funds (ETFs) and speculation of global interest rate cuts. However, the celebration was short-lived, as Bitcoin quickly retreated from its peak.

The notoriously volatile cryptocurrency climbed to a staggering $70,105 before experiencing a rapid decline. As of now, Bitcoin is trading at $66,462.76, highlighting the ongoing uncertainty surrounding the asset class. This volatility is nothing new for Bitcoin, which just days earlier enjoyed a similar climb followed by a dramatic reversal, plummeting over 10% below the $60,000 mark.

This latest price movement comes after a significant turning point for the cryptocurrency industry. In late January, the U.S. Securities and Exchange Commission (SEC) finally approved 11 spot Bitcoin ETFs. This decision marked the end of a gruelling 18-month “crypto winter” plagued by high-profile corporate failures and scandals. The SEC’s approval has instilled renewed confidence in the market, attracting even institutional investors who were previously wary of the crypto market’s wild swings.

The positive sentiment surrounding Bitcoin has also benefitted other digital assets. Ether, the second-largest cryptocurrency by market cap, has soared over 60% year-to-date and was last seen trading at $3,846.21. Laggard XRP was quoted at $0.60 at the time of writing.

This newfound optimism has extended beyond cryptocurrencies themselves, positively impacting crypto-related stocks. Shares of leading cryptocurrency exchange Coinbase surged by 8.2% on Friday, while crypto mining companies Riot Platforms and Marathon Digital witnessed gains of 5.1% and 9.6% respectively.