The resilient end to a bullish week of market activity was made all the more impressive by how BTC slumped from $60,943 to lows of $59,164 in the space of two hours last night.
Bitcoin has managed to achieve its highest weekly close ever, as feverish speculation grows that record prices could be seen this week.
CoinMarketCap data shows that the world’s biggest cryptocurrency ended Sunday with a value of $61,217. A close above $60,000 has only happened once before.
The resilient end to a bullish week of market activity was made all the more impressive by how BTC slumped from $60,943 to lows of $59,164 in the space of two hours last night — only to recoup all of these losses 70 minutes later.
With a futures-based Bitcoin exchange-traded fund in the U.S. set to open its doors for the first time later on Monday, a number of crypto enthusiasts are now setting their sights on a new all-time high above $64,863.
That would be the highest level seen since April, and potentially open the door to a price in six figures.
Why Bitcoin is Rising
The surge in demand for Bitcoin has, in part, been linked to growing concerns surrounding inflation in some of the world’s biggest economies.
This effectively reduces the spending power of the pounds and dollars in a consumer’s pocket — and erodes the value of funds held in savings accounts, especially when combined with low interest rates.
BTC has been regarded as a powerful hedge against inflation by some crypto analysts, who point to how the digital asset has a fixed supply of 21 million coins.
Although there was excitement after the ProShares Bitcoin ETF was approved on Friday, some have expressed concern that this could be a “buy the rumor, sell the news” event.
This ETF only offers exposure to Bitcoin futures, rather than the spot price of this digital asset. A decision on whether to allow physically backed BTC ETFs may only be made by the U.S. Securities and Exchange Commission later this year.