The price of Bitcoin (BTC) is hovering near its all-time high of just over $72,000 U.S. as a halving event scheduled for April 20 approaches.
Bitcoin is currently trading at $72,100 U.S., near the record high of $72,758 U.S. reached on March 11. Other cryptocurrencies are also trading at multi-year or all-time highs.
Ethereum (ETH) is currently changing hands at $4,025 U.S. per token, its highest level in two years.
The high levels are being maintained amid strong inflows into spot Bitcoin exchange-traded funds (ETFs) and news that regulators in the United Kingdom (U.K.) are moving to permit similar investment vehicles.
Improved risk sentiment among investors on expectations that interest rates will move lower in this year’s second half is also driving crypto prices higher.
However, analysts say the biggest catalyst driving the price of Bitcoin and other cryptocurrencies is the upcoming April halving event, which is when the amount of Bitcoin mined, and the rewards given to miners, is reduced by 50%.
That the halving event will lower the issuance of new Bitcoin at a time when demand is historically high is expected to push the price of the largest cryptocurrency even higher in coming weeks.
However, Bitcoin’s price movements remain volatile and they have fluctuated in recent weeks even as it has reached fresh all-time highs.
In the last 12 months, Bitcoin’s price has risen 225
