Mar 6 2024: In Asian trading, Bitcoin has rebounded from recent losses and remains close to $65,000 following a record-breaking surge. Despite a brief drop to $59,000, the cryptocurrency has shown resilience, hovering around $66,022.9 after reaching a peak of $69,063 on Tuesday.
This resilience is attributed to steady capital inflows into U.S. spot ETFs and anticipation surrounding the upcoming “halving” event, which will decrease the rate of new Bitcoin generation. The approval of spot ETFs in U.S. markets has attracted institutional investors to Bitcoin, contributing to its recent gains.
While Bitcoin’s current highs mark a significant recovery from its November 2022 low, some analysts caution against its parabolic rise, suggesting that it may not be sustainable. Despite increased trading volumes, which remain below previous highs, Bitcoin’s volatility continues to deter many retail investors.
However, the approval of spot Bitcoin ETFs in the U.S. is seen as a positive development for the broader crypto industry, offering potential for further institutional investment and bolstering confidence in Bitcoin as a legitimate asset.
