Market Byte: Bitcoin’s Price Reaches New All-Time High
Research Team
Last Updated: 3/5/2024 | 8 min. read
Bitcoin’s price briefly rose above its previous all-time high of $69,000 on Tuesday, March 5. Although the proximate cause of the rally has been inflows into US-listed spot Bitcoin ETFs, marginal demand ultimately reflects investor interest in Bitcoin’s properties as an alternative “store of value” and decentralized computing network.
Active trader positioning in Bitcoin now appears fairly long. Valuations for Ether and most other tokens remain below their highs from the previous crypto cycle.
If the macro markets backdrop remains favorable, we could see further increases in token valuations—but macro factors could also be a headwind.
Exhibit 1: Bitcoin’s price touched new record high
While the spot Bitcoin ETFs offer a new product structure for crypto investment in the US, marginal demand for Bitcoin ultimately reflects investor interest in Bitcoin’s properties as an alternative money medium and decentralized computing network.
Exhibit 3: Positioning indicators suggest active traders are already long
[2] Source: Bloomberg, as of March 5, 2024. According to data provider Kaiko, Bitcoin’s price reached $69,000 on Coinbase and Binance, and $69,076 on OkCoin, on that date.
[3] Source: Calculated by Grayscale using data from Blomberg and CoinMetrics.
[4] Source: DeFi Llama, as of March 5, 2024.
[5] Source: Glassnode, data as of March 5, 2024..
[7] For example, over three-year investment horizons since 2011, Bitcoin has produced an average annualized return of 181% and a minimum annualized return of 39%. Grayscale calculations using monthly Bloomberg data as of February 29, 2024.
Important Information
Investments in digital assets are speculative investments that involve high degrees of risk, including a partial or total loss of invested funds. Investments in digital assets are not suitable for any investor that cannot afford loss of the entire investment.
All content is original and has been researched and produced by Grayscale Investments, LLC (“Grayscale”) unless otherwise stated herein. No part of this content may be reproduced in any form, or referred to in any other publication, without the express consent of Grayscale.
This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any investment in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change. This content does not constitute an offer to sell or the solicitation of an offer to sell or buy any security in any jurisdiction where such an offer or solicitation would be illegal. There is not enough information contained in this content to make an investment decision and any information contained herein should not be used as a basis for this purpose.
This content does not constitute a recommendation or take into account the particular investment objectives, financial situations, or needs of investors.
Investors are not to construe this content as legal, tax or investment advice, and should consult their own advisors concerning an investment in digital assets. The price and value of assets referred to in this content and the income from them may fluctuate. Past performance is not indicative of the future performance of any assets referred to herein. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments.
Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on Grayscale’s views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied in such statements. In addition to statements that are forward-looking by reason of context, the words “may, will, should, could, can, expects, plans, intends, anticipates, believes, estimates, predicts, potential, projected, or continue” and similar expressions identify forward-looking statements. Grayscale assumes no obligation to update any forward-looking statements contained herein and you should not place undue reliance on such statements, which speak only as of the date hereof. Although Grayscale has taken reasonable care to ensure that the information contained herein is accurate, no representation or warranty (including liability towards third parties), expressed or implied, is made by Grayscale as to its accuracy, reliability, or completeness. You should not make any investment decisions based on these estimates and forward-looking statements.
There is no guarantee that the market conditions during the past period will be present in the future. Rather, it is most likely that the future market conditions will differ significantly from those of this past period, which could have a materially adverse impact on future returns. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. We selected the timeframe for our analysis because we believe it broadly constitutes the most complete historical dataset for the digital assets that we have chosen to analyze.
Share This
Like what you see?
Subscribe below for the latest research from Grayscale.
