On a roller-coaster trading day, Bitcoin achieved an unprecedented milestone by momentarily breaking the $70,000 threshold, signaling a robust enthusiasm in the cryptocurrency sector. The spike was fueled by eager investor interest in fresh U.S.-based spot exchange-traded cryptocurrency products and the anticipation of a global downturn in interest rates.

At its peak, Bitcoin reached $70,105 but soon retreated, stabilizing at $68,317.72. This surge is part of a broader wave of investment, with billions funneling into ETFs in recent weeks, buoyed by the upcoming enhancement of the Ethereum blockchain and a forthcoming Bitcoin halving event, expected to decrease the rate at which new bitcoins are generated, in April.

Despite these gains, the volatile and speculative nature of cryptocurrencies remains a concern. After reaching new heights on Tuesday, Bitcoin experienced a sharp decline, falling over 10% to dip below the $60,000 mark. According to Antoni Trenchev, co-founder of Nexo, navigating these peaks is complex, and the market should brace for potential sudden drops of 10%-20% throughout 2024.

The cryptocurrency industry celebrated a significant achievement with the U.S. Securities and Exchange Commission’s approval of 11 spot bitcoin ETFs in late January, ending an 18-month “crypto winter” marked by corporate bankruptcies and scandals. This move has drawn in institutional investors who had previously avoided cryptocurrency due to its volatility, contributing to the current rally’s momentum.

Investment into the top ten U.S. spot bitcoin funds soared, with a notable $2.2 billion influx in the week ending March 1—over $2 billion of which went into BlackRock’s iShares Bitcoin Trust, per LSEG data.

The excitement surrounding Bitcoin has also positively impacted other cryptocurrencies, especially Ether, which has seen a more than 60% increase since the year’s start. Ether recently rose by 1.62% to $3,939.84. Cryptocurrency stocks have similarly enjoyed gains, with Coinbase shares up by 8.2%, and crypto miners Riot Platforms and Marathon Digital increasing by 5.1% and 9.6%, respectively.