Bitcoin has kicked off the new week with strong demand, nearing its all-time high and poised for further gains. Several factors contribute to this surge in Bitcoin’s price, including increased investor enthusiasm and inflows into cryptocurrency exchange-traded funds (ETFs).

The approval of the first spot Bitcoin ETFs by the U.S. Securities and Exchange Commission in January has provided both institutional and retail investors with an avenue to gain exposure to Bitcoin without direct ownership of the underlying asset. This development has significantly contributed to Bitcoin’s recent price momentum.

Additionally, the upcoming Bitcoin “halving” event scheduled for April 20 is another key driver behind the surge. The halving event, which occurs approximately every four years, is designed to reduce the supply of newly minted Bitcoins, ultimately curbing inflation. Historically, this event has led to a surge in Bitcoin’s price, as it reduces selling pressure and triggers an upward trajectory for the cryptocurrency.

Ken Timsit, Managing Director at Cronos Labs, explains that the halving event reduces the pace of Bitcoin creation, which, in turn, decreases selling pressure and historically leads to a sustained period of price appreciation.

As of the latest update, Bitcoin is trading at $72,195, marking a 4.2% increase and surpassing the $71,000 level for the first time since mid-March. With a rise of over 140% in the last 12 months and hitting a record high above $73,000 in March, Bitcoin continues to attract significant attention from investors and analysts.

Denis Petrovcic, CEO at Blocksquare, emphasizes the transformative impact of ETFs on Bitcoin’s institutional adoption, projecting long-lasting market shifts, especially with the upcoming halving event. Anthony Scaramucci of SkyBridge Capital remains bullish on Bitcoin, predicting a conservative target of $170,000 for the current cycle.

Bitcoin’s rally has also positively influenced other digital currencies, with Solana and Avalanche gaining traction alongside Bitcoin. Brad Garlinghouse, CEO of blockchain startup Ripple, is optimistic about the broader cryptocurrency market, anticipating its combined market capitalization to exceed $5 trillion this year, driven by real institutional money flowing into the space.