Bitcoin ATH - $70,000 For the First Time.

Bitcoin, the pioneer cryptocurrency, has surged to an all-time high after breaking through its previous ATH of $69,170.

Breaking records

Bitcoin has soared to unprecedented heights, breaking through the $70,000 barrier. Some believe this is partly fueled by the introduction of new spot bitcoin exchange-traded funds (ETFs) while others attribute this surge to the upcoming Bitcoin halving.

The debut of spot bitcoin ETFs in January exposed Bitcoin and the crypto space. These ETFs give access to individuals and institutions looking to get in on the Bitcoin action. With a spot Bitcoin ETF, investors can obtain Bitcoin without having to hold the asset. ETFs offer a convenient and regulated way to invest in BTC since there is always talk about cryptocurrency security, the complexity of holding the currency, and all the tax and regulatory factors around cryptocurrency.

Even though, this defeats the purpose of Bitcoin, which is meant to be a decentralized store of value that aims to eliminate the need for central authorities such as banks or governments. Some may see Bitcoin Spot ETFs as a total waste of time, while other more "traditional" individuals and companies are very excited about ETFs. There is one thing we can't deny though, ETFs are indeed bringing exposure to Bitcoin and cryptocurrency, so if you are a Bitcoin maxi or not, this is one step forward to adopting Bitcoin across the globe.

Why is Bitcoin price surging?

Market price analysts say that the ETFs brought exposure to Bitcoin. Bitcoiners say that it's the upcoming Bitcoin halving.

At the beginning of the Bitcoin protocol, a miner would get rewarded 50 Bitcoins for mining a block. Every 210,000 blocks (roughly 4 years) rewards are cut in half. The next halving is expected to be in April of this year, which lines up with the current BTC bull run. This halving event makes Bitcoin harder to obtain. Reducing the daily production of new coins consecutively decreases inflation and ultimately leads to a higher demand for Bitcoin for its rarity.

How Bitcoin halvings have affected market price

Previous Bitcoin halvings have also moved the price of Bitcoin. There is no debating that. Let's break down previous Bitcoin halvings and how they impacted price swings.

-The first BTC halving was on November 28, 2012. The block rewards were reduced from 50 BTC to 25 BTC per block mined.
At the time of halving, BTC was roughly $11-$15. The year after, it peaked at over $1,100 per BTC.

-The second halving was on July 16, 2016. This halving reduced the previous reward per block of 25 BTC to only 12.5 BTC per block. At the time of this halving Bitcoin was roughly $600, a year after it peaked at over $17,000!

-The third Bitcoin halving was on the 11th of May, 2020. The block rewards were reduced even more, from 12.5 BTC per block to only 6.25 BTC per block. At the time of halving, bitcoin was somewhere in the $9,000 range, and it peaked the following year, reaching all-time highs of over $67,000!

We can see somewhat of a pattern of how each halving has affected BTC price in these cycles.

BTC Future

The current block rewards are still at 6.25 BTC. With the upcoming halving sometime this April, the block rewards will be reduced to 3.125.

At the time of writing, Bitcoin stands at $71.750 per 1 BTC, and some forecasts suggest that Bitcoin could surpass the $100,000🚀mark.

What are your thoughts on Bitcoin price post-halving and how high it could go? Join the conversation over on the Bitwage Slack!