Last week, the cryptocurrency market was shaken by the news of a new historical high for Bitcoin's price, which exceeded $106,000. This surge was supported by several factors. The main driver was the increased interest from institutional investors, who are actively buying Bitcoin through recently launched spot exchange-traded funds (ETFs). These instruments simplified access for large players to cryptocurrency, increasing liquidity and leading to a significant price rise.
An additional catalyst was the decrease in interest rates by the U.S. Federal Reserve. This strengthened Bitcoin's position as a hedge against inflation and elevated its status as 'digital gold.' The increase in trading volumes on major exchanges such as Binance and Coinbase also played an important role, demonstrating the growing interest in Bitcoin from retail investors.
This trend not only solidified Bitcoin's dominant position but also positively impacted the entire market. Ethereum, the second-largest asset by capitalization, also saw significant growth, surpassing the $4,000 mark for the first time in a year. The influx of investments in layer 2 solutions, such as Arbitrum and Optimism, further supported Ethereum's growth.
The news of Bitcoin's rise has sparked a wave of discussions in the crypto community. Many analysts predict further growth, considering the increasing interest in cryptocurrencies against the backdrop of traditional market instability and the ongoing development of digital asset infrastructure.
