‘Enormous’: Bitcoin breaks all time high in Australia

Bitcoin has officially broken new ground this week after a turbulent period. And, Aussies in particular will be happy.

Diyarbakir, Turkey - September 25, 2021: Close up shot of a golden Bitcoin coins on black background with price graph

After a monolithic collapse that sent investors scurrying in recent years, Bitcoin has finally broken new ground in 2024.

Today the digital asset has broken a new all-time high in Australia, previously $93,482.34 (US$60,936.46) on November 10, 2021.

The value of Bitcoin has been higher when compared to US dollars, but the Aussie dollar is weak at the moment.

Those who held on through the storm have been licking their lips this week as the revolutionary asset peaked to highs not seen since its almighty collapse in 2022.

Cryptocurrency advocates are understandably in a frenzy, after doubters all but wrote off the revolutionary asset when it dipped below $25,000.

On Thursday, Bitcoin rocketed up to US$61,520, marking a 162 per cent increase from this time last year.

Bitcoin is flying.

The digital asset has been buoyed by US moves toward creating exchange-traded funds (ETFs) to track the price of the world’s most popular cryptocurrency, which would expand its potential investor pool by allowing the public to place bets without directly purchasing the digital unit.

James Harte, an analyst from Tickmill, notes that prices are also buoyed as major industry players invest in bitcoin ahead of the “halving” — or the dividing in two of the reward for the token’s miners.

The event, which occurs about every four years, is next due in April. It is expected to slow the speed at which new bitcoins enter the market, reducing the cryptocurrency’s potential availability for purchase, which should boost its value.

“As the issuance of new bitcoin slows down, the existing scarcity of the digital asset becomes even more pronounced, typically leading to increased demand and, subsequently, higher prices,” Nigel Green, head of financial advisory firm deVere Group, said.

“Cryptocurrencies remain highly speculative, but the enormous interest in spot ETFs and the upcoming halving event... can be expected to continue to fuel the current momentum which could lead bitcoin to surpass the $69,000 mark.”

Peter Brandt, an analyst with over four decades of experience tracking market trends, says the party is far from over for crypto nuts, predicting it could peak at US$200,000 (A$305,000) next year.

Brandt had initially estimated Bitcoin to rise past US$120,000 (A$183,000) in 2025 but now believes the hype will continue to build.

“With the thrust above the upper boundary of the 15-month channel, the target for the current bull market cycle scheduled to end in Aug/Sep 2025 is being raised from $120,000 to $200,000,” Brandt said in a tweet.

Bitcoin has passed all-time highs in 30+ countries, including China and India. pic.twitter.com/63CnC9DE0F

— Balaji (@balajis) February 28, 2024

Others say Bitcoin, often referred to as the “internet’s gold”, could eclipse the real life gold market in years to come.

“Bitcoin will eventually capture around a quarter of the monetary gold market,” Fidelity director of global macro Jurrien Timmer said.

“At 40 per cent, monetary gold is currently worth around $6 trillion, while bitcoin is worth $1 trillion.”

Observing Bitcoin’s overall worm since its emergence in 2008 is promising — it has regularly boomed and dipped for years, with the surges consistently reaching higher peaks.

Experts say its next peak could come as soon as March.

“With 54 days left before the bitcoin halving and the expectation of the Fed’s interest rate cut in the middle of the year, bitcoin prices have a support level at $50,000 and may fluctuate to hit historical highs in March,” Ryan Lee, chief analyst at Bitget Research, told CoinDesk.

“The trading volume of nine bitcoin ETFs in the U.S. also reached a new high of $3.2 billion last week, indicating institutions have a strong bullish sentiment,” Lee added.