Bitcoin hits record high above $69,000, then tumbles

WASHINGTON/LONDON/SINGAPORE (Reuters) -- Bitcoin touched a record high on Tuesday, fueled by investors pouring money into U.S. spot exchange-traded crypto products and the prospect that global interest rates may fall.

The world's largest cryptocurrency hit a high of $69,202, topping November 2021's all-time peak of $68,999.99. Investor interest has increased since the Securities and Exchange Commission approved 11 spot bitcoin ETFs in late January. It then reversed course and was recently down around 7% at $63,400.

"The bitcoin all-time high marks a turning point for crypto," said Nathan McCauley, CEO and co-founder of crypto platform Anchorage Digital. "Traditional institutions were once sitting out; today, they are here in full force as the principal drivers of the crypto bull market."

The cryptocurrency's latest meteoric rally may have more legs than in 2021 as more institutional investors commit long-term money that could help the token sustain its high levels this time, some experts believe.

Bitcoin's nearly 160% ascent since October, of which 44% came in February alone, marks a sharp contrast to 2022, when the market was beaten into an 18-month long crypto winter, plagued by a string of high-profile corporate bankruptcies and scandal.

Net flows into the 10 largest U.S. spot bitcoin funds reached $2.2 billion in the week ended March 1, with more than $2 billion of that going into BlackRock's iShares Bitcoin Trust, according to LSEG data.

"Bitcoin has essentially been going straight up for several days," said Steve Sosnick, chief strategist at Interactive Brokers. "It's normal to see a little bit of profit taking, when any asset becomes so extended."

In addition to demand from a wider pool of investors, bitcoin, and crypto