Bitcoin (BTC) is now closing in on its all-time high, which previously ranged from $73,090 to $73,835 across exchanges.
Trading in the upper $72,000s, BTC has surged nearly 8% since Tuesday, October 26, capping a year-long rise of over 100%.
Bullish Tailwinds
The surge has been fuel, at least in part, by the U.S. Securities and Exchange Commission’s (SEC) approval of Bitcoin ETFs, opening the market to institutional investors like Blackstone.
Following mid-September 2023’s trading levels around $25,000, Bitcoin embarked on a rapid bull run through March, nearly tripling in value in just six months.
This ETF approval has made Bitcoin investments accessible to a wider, risk-averse investor base, a marked shift from the unregulated, high-risk cryptocurrency exchanges of the past.
Related: Bitcoiners Are Moving Their Holdings Off Exchanges
Unlike traditional exchanges that often folded in headline scandals—such as Mt. Gox in 2014 and FTX in 2022—the ETFs allow investors to trade BTC with the added security of regulatory oversight, contributing to Bitcoin’s growing reputation as a more stable asset class.
Despite the massive losses incurred by the investors defrauded by these exchanges, Bitcoin itself and the blockchain it operates on have never successfully been hacked or manipulated.
These regulatory safeguards spotlighted prior weaknesses in cryptocurrency exchanges, notably in FTX’s case.
Reconciling the Past
FTX collapsed after it was revealed that, despite showing BTC balances on customer accounts, the exchange hadn’t purchased the corresponding Bitcoin on the blockchain.
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Instead, it invested in speculative cryptocurrencies, leaving investor accounts with only digital placeholders rather than actual BTC holdings. When news leaked about this discrepancy, a $6 billion wave of withdrawal requests over 72 hours exceeded FTX’s cash reserves, forcing account lockdowns and culminating in its November 2022 bankruptcy filing.
Now, two years later, bankruptcy Judge John T. Dorsey has approved a recovery plan for FTX, allocating $14.7 to $16.5 billion for investor reimbursements, restoring confidence among cryptocurrency investors.
Additionally, Mt. Gox’s recovery plan has begun returning BTC to investors, albeit a decade later, as indemnification. Such resolutions, though delayed, signal to investors that the cryptocurrency market is beginning to establish mechanisms for recourse.
Related: eToro’s SEC Settlement Mandates Liquidation of Most Crypto Assets Within 180 Days
Halving Cycle as a Catalyst for Bitcoin All-Time Highs
Bitcoin’s recent surge past $72,000 follows a strong year for Wall Street’s capital influx post-ETF approval and the conclusion of a key mining cycle in April.
Bitcoin mining cycles, typically four years long, mark a halving of rewards given to miners. This creates a deflationary effect as the computational difficulty and scarcity of new BTC increase.
Each halving historically results in tightened supply amid rising demand, propelling Bitcoin’s price action since its 2008 debut.
The last four-year mining cycle concluded in April 2024, making it the fourth completed cycle. Historically, Bitcoin has achieved new all-time highs 10–18 months after each cycle’s end, fueling speculation among enthusiasts that BTC’s next peak may be imminent.
While three prior cycles don’t establish a definitive trend, the price’s steady climb from $50,000 to over $72,000 reinforces hopes that historical patterns may repeat.
This article is strictly for informational purposes and should not be considered financial advice.
