Bitcoin surged to a new all-time high of $39,700 on Saturday after a wild day of trading that saw the cryptocurrency’s price rise and fall by more than $9,000.
The volatile swings came as bitcoin neared its third halving event, which is scheduled to occur on May 12 and will cut the rewards miners receive for verifying transactions on the network by half.
The price of bitcoin has been on a tear in recent months, rising more than 170% since October as mainstream investors have increasingly turned to the cryptocurrency as a hedge against inflation and macroeconomic uncertainty.
The rally showed no signs of slowing down this week, with bitcoin climbing to a new all-time high of $41,000 on Wednesday before tumbling back down to around $37,000.
The latest surge took bitcoin’s market capitalization to more than $700 billion, making it the most valuable cryptocurrency in the world.
The move higher also lifted the total value of all cryptocurrencies to a new all-time high of $2.2 trillion.
The rally in bitcoin and other digital assets came as traditional financial markets were roiled by a sell-off in tech stocks that sparked fears of a broader market correction.
The sell-off continued on Friday, with the Dow Jones Industrial Average plunging more than 2%, while the Nasdaq Composite Index tumbled 4%.
Despite the market turmoil, bitcoin has held its ground and even managed to post gains.
The cryptocurrency’s resilience is a sign that it is increasingly being viewed as a safe haven asset by investors.
Joshua Bejerano is a top-level crypto journalist who has been in the business for years. He got his start in the early days of Bitcoin, and has never looked back since. He is a highly respected member of the community, and is known for his incisive analysis and insightful writing.
When he's not busy reporting on the latest news in the crypto world, Joshua enjoys spending time with his family and friends. He is also an avid mountain biker, and can often be found out on the trails near his home.