Bitcoin’s market value soared to an all-time high of more than $69,000 on Tuesday. This spike represents a huge step forward for the cryptocurrency, that in 2022, watched thousands of dollars in value disappear. The increase is being fueled by several factors. Much of the current excitement is focused on the next “halving” and the potential for U.S. regulators to approve bitcoin exchange traded funds (ETFs).

The cryptocurrency’s price has been on a continuous rise in the last few weeks, surpassing the $50,000 and $60,000 thresholds. Bitcoin earlier in the day had broken the $68,000 record set in November 2021. Yet, despite all the bullish activity, the price pulled back to $63,000 by late afternoon.

Yesterday’s widely expected “halving” is being touted as one of the big reasons behind the bitcoin rally. This event only occurs once every four years. It slashes the number of coins that crypto miners can mine in half, effectively reducing supplies.

The approval of bitcoin ETFs in the U.S. has played a role in driving up prices too. These ETFs will give average investors access to Bitcoin through their regular brokerage accounts – the same way they buy stocks or bonds.

Despite approving bitcoin ETFs earlier in the year, Security and Exchange Commission Chairman Gary Gensler sounded a note of caution.

"While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin. Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto." - Security and Exchange Commission

"Though we’re merit neutral, I’d note that … [bitcoin is primarily a speculative, volatile asset that’s also used for illicit activity including ransomware, money laundering, sanction evasion and terrorist financing," - Gary Gensler

Some analysts predict potential profit-taking following Bitcoin's surge.

"Given that nearly everyone who has ever bought bitcoin is now in profit, there are decent odds we see some amount of profit taking," - Zaheer Ebtikar, Bloomberg News