Frenzy as Bitcoin rewrites history

Investors are scrambling as the world’s leading cryptocurrency rewrites the record books again, hitting a new high on Friday.

Bitcoin is doing its thing again.

The world’s leading cryptocurrency has rewritten the record books again, hitting a new highest on Friday.

The digital asset surged to US$116,868 (A$176,740), marking a 4 per cent gain in the past 24 hours and 6 per cent over the week.

It has been a moment of vindication for long-term holders, who have dug their toes in despite the asset’s chequered history.

In July 2020, was Bitcoin trading around A$13,000. Its previous major local high came during the 2021 bull run, when it hovered around A$94,000 in November. Since then, it’s weathered a prolonged bear market, a banking crisis, inflation fears, and a “crypto winter” that shook the industry to its core.

Charlie Sherry, Head of Finance at BTC Markets, attributes the latest surge to a confluence of forces.

“The latest leg of the rally appears to be driven by a combination of continued exchange traded fund (ETF) inflows, strong on-chain activity and renewed institutional interest, particularly in the lead-up to expected Fed rate cuts in Q3,” Mr Sherry said in a statement provided to news.com.au.

Momentum is also clearly reflected in recent trading behaviour as hordes of investors clamoured to get their foot in the door.

Bitcoin has hit its all time high.

“Global BTC spot trading volumes surged 23.6 per cent overnight, topping US$51.7 billion in 24-hour turnover,” Mr Sherry noted.

The local appetite mirrors that global enthusiasm.

“On the local BTC Markets exchange, we’ve seen an 18.4 per cent lift in AUD-denominated BTC volume day-on-day, with BTC/AUD now accounting for the majority share of local crypto trading activity.”

Retail and institutional traders alike appear to be moving decisively.

“We saw a significant increase in AUD deposits onto the platform over the past week, reflecting early positioning and strong directional conviction. This continued strength in our order books captures both retail and wholesale demand as investors rotate into the next phase of the cycle.”

From a technical lens, Bitcoin’s current trajectory suggests the rally still has fuel in the tank.

From a technical lens, Bitcoin’s current trajectory suggests the rally still has fuel in the tank. (Photo by Ozan KOSE / AFP)

“From a technical perspective, the immediate support is now at the previous breakout level of US$113,000, with resistance sitting at US$120,000, followed by US$128,500, a key Fibonacci extension level based on the last macro swing,” Mr Sherry said.

But the spotlight isn’t solely on Bitcoin.

“While Bitcoin leads from the front, attention is beginning to shift towards the broader market. Ethereum is up 7.23 per cent on the day, testing key resistance at US$3,000, and Solana has reclaimed US$164, suggesting risk appetite is broadening.”

It’s what traders have come to call an “alt season”, where a rise in bitcoin also prompts gains in other assets.

“Historically, this kind of rotation has preceded the start of an alt season, where capital flows from Bitcoin into higher-beta assets. We’re not quite there yet, but the foundations are forming, particularly as Ethereum outperforms in short bursts and Layer 1 network activity increases,” Mr Sherry explained.

Originally published as Frenzy as Bitcoin rewrites history