Bitcoin Value Hits New High

High Bitcoin

With the famously volatile Bitcoin cryptocurrency briefly hitting a new all-time high value of $69,000 recently, we look at the reasons why this happened and what could happen next. 


This latest surge in the value of Bitcoin has been attributed to US finance giants like Grayscale, BlackRock, and Fidelity investing billions of dollars into Bitcoin, thereby driving up its value and becoming major players or “Bitcoin whales” in the cryptocurrency market. 

Some reasons why Bitcoin is so appealing to them include: 

– Bitcoin’s scarcity. This particular cryptocurrency has a cap of 21 million coins, of which 19 million have already been mined, thereby giving potential for high returns.   

– Bitcoin ETFs offering a more accessible way for investors to gain exposure to Bitcoin, especially in retirement accounts like IRAs, without dealing with the complexities and costs of direct cryptocurrency purchases and management. 

Last High 

Bitcoin reached its new high of $69,000 (on March 5, 2024), only to see its trading value fall to around $62,185 just six hours later that day. Bitcoin’s previous highest value of $68,789.63 was reached back in November 2021. At the time, the rise was fuelled by its increased adoption by mainstream finance and significant investments from large corporations and institutional investors. Also, there was heightened interest in cryptocurrency as a hedge against inflation and currency devaluation amid expansive monetary policies worldwide. 


However, from its inception in 2009, Bitcoin’s volatility has become legendary. For example, in 2021 it saw a drop from highs of over $63,000 in April to as low as $29,000 in a few months, while in 2022, Bitcoin’s value plummeted from a high of $68,000 to below $20,000. At that time, the fall was driven partly by the broader instability in the crypto market and the collapse of TerraUSD Classic (USTC). However, many of its famous crashes have been triggered by a variety of factors, including hacks, regulatory changes, market sentiment shifts, and broader economic conditions. 

General Upward Trend 

All that said, it’s worth noting that despite the many downturns, Bitcoin has shown a general upward trend and a pattern of recovery and growth over time, though the timing and trajectory of these recoveries have varied widely. 

Good News For Some 

Clearly, the current high value of Bitcoin is good news for many investors, not least of which is El Salvador’s President Nayib Bukele’s national government which has followed a policy of purchasing 1 BTC daily following the FTX exchange collapse. What many may see as a somewhat risky endeavour (especially for a nation’s public funds) has seen the country adopting Bitcoin as legal tender, acquiring nearly 2,800 Bitcoins, and now having an investment that could potentially yield a 40 per cent profit! For some, therefore, El Salvador’s policy could be viewed as a forward-looking strategy that could redefine financial sovereignty and economic stability.   

What Does This Mean For Your Business? 

The recent surge to a new all-time high of $69,000 for Bitcoin, albeit brief, is significant for several reasons, especially for so-called ‘Bitcoin whales’ and other business investors in the UK and globally. This peak, driven by massive investments from US finance giants, underscores Bitcoin’s appeal due to its scarcity and the potential for high returns. Also, the introduction of Bitcoin exchange-traded funds (ETFs) provides an accessible investment route, avoiding the complexities of direct cryptocurrency management. 

This latest high-point reflects Bitcoin’s ongoing appeal amidst a landscape where digital currencies are increasingly viewed as a hedge against traditional financial uncertainties. However, the sharp decline in its value just hours later also highlights the inherent volatility of Bitcoin. Its history is riddled with rapid ascents followed by steep declines, clearly illustrating the risky nature of investing in cryptocurrency. 

For businesses considering Bitcoin or other digital currencies as an investment, the current high represents both an opportunity and a cautionary tale. Bitcoin’s appeal lies in its decentralised nature, finite supply, and its potential to offer significant returns. Businesses attracted to Bitcoin enjoy the advantage of high liquidity and the potential to diversify their investment portfolio away from traditional fiat currencies, which may be subject to inflation and devaluation. 

That said, its volatility suggests a cautious approach is best, where businesses should not invest more than they can afford to lose and rather consider Bitcoin as part of a diversified investment strategy. 

Looking ahead, predicting the future value of Bitcoin and the duration of its current high is challenging with market analysts divided. Businesses should, therefore, try to stay informed and agile, ready to adapt their investment strategies in response to Bitcoin’s rapid price changes. 

For businesses wary of Bitcoin’s volatility, there are, of course, alternatives in the cryptocurrency space, such as stablecoins, which are pegged to fiat currencies and offer less price volatility, or investing in blockchain technology itself, which underpins cryptocurrencies and has broader applications across industries. 

All things considered, despite this latest rise being good news for some, companies may be well advised to approach cryptocurrency investment with a strategy that acknowledges its volatility, incorporates thorough research, and includes a plan for managing potential downturns. 


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Mike Knight