On Friday, bitcoin’s price surpassed $70,000 for the first time in history.
According to Coin Metrics, the cryptocurrency was recently worth $69,304.84, up approximately 2%. It did, however, reach a high of $70,170.00, breaking the previous record set on Tuesday. It’s on track to finish the week up by . 10%
The upward trend began around the time the US stock market opened. With the launch of spot bitcoin exchange-traded funds in the United State cryptocurrency s, major moves now occur during typical stock trading hours.
The early advance may have been fueled in part by investors anticipating the February jobs report, hoping that a higher unemployment rate and slower-than-expected employment growth in December and January will pave the way for the Federal Reserve to start cutting interest rates later this year.
However, cryptocurrency trading has been particularly tumultuous this week. After setting a new record on Tuesday for the first time in more than two years, bitcoin fell as much as 10%, dragging down other cryptocurrencies and crypto stocks with it, before regaining much of its losses the next day. The bitcoin historical volatility index has reached its highest level in nearly a year, according to TradingView.
“Navigating old highs is notoriously difficult, and the bitcoin dam does not always burst on the first try,” said Antoni Trenchev, co-founder of cryptocurrency exchange Nexo. “Tuesday’s steep bitcoin sell-off was healthy, necessary, and a forerunner to future rises. Volatility defines bitcoin bull markets, and 2024 will be filled with unexpected and gut-wrenching 10%-20% drops.”
