Bitcoin Blasts Past $70,000, Ethereum Breaks $4K Barrier: What's Driving Crypto Higher?

Bitcoin BTC/USD surged past the $70,000 mark early Monday, reversing some recent minor losses and setting a new all-time high. This signals a robust uptrend in the cryptocurrency market.

Ethereum Joins Rally: Alongside Bitcoin, Ethereum ETH/USD also experienced a significant increase, crossing the $4,000 mark. Crypto analyst Michaël van de Poppe noted that the apex cryptocurrency reached a new all-time high of $71,300.

Factors Driving the Surge: According to CoinDesk, analysts at the LondonCryptoClub attribute the price surge to a combination of factors:

• London Stock Exchange Embraces Crypto: The London Stock Exchange’s recent decision to accept applications for Bitcoin and Ether exchange-traded notes (ETNs) has boosted investor confidence.
• Institutional Investor Interest: The U.K.’s Financial Conduct Authority’s move to open pathways for institutional investors to develop crypto asset-backed ETNs further fueled the rally.

Bitcoin Outperforms Stocks: This landmark ascent in Bitcoin’s value is noteworthy even amidst a downturn in Asian equity markets, likely driven by speculation of an interest rate increase by the Bank of Japan, as per reports.

Why It Matters: The surge in Bitcoin’s value is not an isolated event. It’s the culmination of several trends shaping the cryptocurrency landscape, including the U.S. Securities and Exchange Commission’s approval of spot Bitcoin-based ETFs.

Market intelligence platforms highlight that Bitcoin and Ethereum have significantly outperformed the S&P 500 this year, underlining the growing investor confidence and resilience of cryptocurrencies.

Crypto analysts remain bullish. Tom Lee of Fundstrat Global Advisors predicts an approximate 119% increase in Bitcoin’s price over the next 12-18 months, potentially pushing it beyond $150,000. Lee’s forecast hinges on the potential of spot ETFs and the anticipated impact of upcoming halving events, which have historically correlated with price increases.

Price Action: At the time of writing, Bitcoin was trading up 0.47% at $69184, while Ethereum was 0.69% higher at $3874, as of 6:52 a.m. ET.

Read Next: Bitcoin Rally Sparks Hope For Altcoins Revival Despite 72% Of Projects Dying Since 2020

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.