Bitcoin price breaks out setting new all-time high at AUD$79,800
Bitcoin has surged today setting a new record high as months of positive news reaches critical mass.
After first passing the $79,000 milestone a month ago, Bitcoin has traded largely sideways over the past month, reaching as low as $67,000 despite being buoyed by a deluge of positive news including announcements from Visa, Goldman Sachs and Fidelity.
Pressure in the US is mounting to launch a Bitcoin ETF which would allow share traders to invest in Bitcoin, drastically broadening the market and making it easier for institutions to gain exposure. The U.S. Securities and Exchange Commission (SEC) is currently reviewing eight different Bitcoin ETFs, including one filed on Friday by ETF powerhouse WisdomTree.
Excitement for access to Bitcoin exposure via the share market is also on display ahead of Coinbase's IPO set for Wednesday. Research from analytics firms such as Delphi Digital and DA Davidson are discussing valuations ranging from US$90 billion to US$230 billion, while the price of "Coinbase pre-IPO contracts" on FTX exchange are predicting a US$135 billion valuation on opening day.
Giving retail and institutional investors access to Bitcoin proxies through the share market is seen as a potentially less risky form of investment than buying Bitcoin directly, by tapping into established regulatory frameworks and infrastructure.
Altcoins set new records
Leading altcoins have been swept up by Bitcoin's momentum today, with Ethereum establishing support around $2,800, XRP returning to $1.95 for the first time in years, and dogecoin returning to hover around its previous record high of 10 cents.
Binance Coin (BNB) set a new all-time high (ATH) of $690 with a total market capitalisation of $106 billion (US$80 billion), which serves as an interesting yardstick to measure Coinbase valuations against.
Disclosure: The author owns a range of cryptocurrencies at the time of writing