• Bitcoin surges to an all-time high of $69,202 on Tuesday

• Experiences a pullback but rebounds strongly

• Focus shifts on halving and Fed rate cut trajectory

Turning point

This has been a landmark week for Bitcoin and the crypto market in general as on Tuesday the king of digital currencies stormed to a fresh all-time high of $69,202, according to data compiled by LSEG Eikon, before paring some gains. Despite an initial pullback, the bulls managed to quickly regain the upper hand and propel the price again within breathing distance from its recent all-time peak.

Of course, the approval of spot-Bitcoin ETFs has proved to be a gamechanger. In less than two months after Wall Street’s embracement of digital currencies, Bitcoin stormed to a fresh record high even though most analysts were expecting this to occur after the halving event in April. Meanwhile, rate cut bets have been drastically scaled back compared to the beginning of the year, but Bitcoin investors look unhindered.

Right now, it seems that the institutional money that found its way into the volatile crypto space is here to stay. Considering that Bitcoin is trading near all-time highs, the majority of those who have invested in it are currently in profit, which could open the door for a huge wave of profit taking. However, this has not been the case so far as the price recovered immediately from its post-record-high slump, indicating investor trust in longer-term prospects.

The absence of highly speculative moves at this stage might suggest that the crypto market is slowly transitioning to a more mature phase. Obviously, the adoption by big Wall Street names has helped with transparency, legitimacy and liquidity. What remains to be seen though is whether cryptos can exhibit any form of intrinsic value.

Focus shifts on alts

Considering the broader euphoria not just in the crypto space but also in stock markets or even in gold, investors are turning their attention to assets that are currently trading significantly below their all-time highs. For that reason, we could see smaller coins appreciating in the near future as it could be inferred that gains on instruments that are currently close to record peaks are limited.

Ethereum, which is currently trading just shy of the $4,000 psychological mark, appears to be first in that list. Firstly, Ethereum prices have historically reacted well to successful upgrades in the altcoin’s network, opening the door for more upside after the impending Dencun update on March 13.

Also, there is increasing speculation that spot-Ethereum ETFs will get regulatory approval in the upcoming months. If Bitcoin’s experience serves as an example, institutional demand could provide a significant boost to Ethereum prices.

Levels to watch

BTCUSD has exploded in 2024, posting a fresh all-time high of $69,202 on Tuesday. Although the price dropped to as low as $59,313 on the same day, it quickly bounced back and advanced towards its recent record peak.

From where we are standing, Bitcoin could edge higher to revisit its all-time high of $69,202 ahead of the $70,000 psychological mark.

Alternatively, should the price undergo a pullback, the bears could attack the recent support of $59,313 before the February hurdle of $50,500 comes under scrutiny.