The surge in price was initially fueled by the approval of spot bitcoin ETFs, but is now being propelled even higher with the highly anticipated "halving" event on the horizon.

According to data from CoinMarketCap, bitcoin has witnessed a remarkable 9.5% increase in the past seven days and a staggering 50% surge over the course of the month. As a result, the total cryptocurrency market cap across all tokens has also seen an uptick, now standing at $2.71 trillion, with bitcoin accounting for an impressive 52.7% of that amount.

While the current bull frenzy has instilled a sense of optimism among many investors, cautionary signs have also emerged. The CoinMarketCap Crypto Fear & Greed Index, which measures market sentiment, is currently in "extreme greed" territory at 89.12 points, indicating a possible impending correction. Similar spikes in the past have often been followed by price dips.

Despite these concerns, bitcoin remains the primary focus for both retail and institutional investors. According to CoinShares' Digital Asset Fund Flows Weekly Report, bitcoin saw inflows of $2.6 billion in just one week and a substantial $9.9 billion year-to-date. On the other hand, Ethereum, the second-largest cryptocurrency, has not experienced direct benefits from the bitcoin hype, with its inflows down by $2.1 million this week, though it has seen an increase of $135 million year-to-date.

Looking ahead, all eyes are now on the upcoming bitcoin halving event, which is expected to take place in mid-April. This event, which occurs every four years, limits the amount of new supply put into circulation from bitcoin miners. In previous cycles, halvings have triggered increased demand and pricing for the cryptocurrency. Notably, the last halving in May 2020 drove bitcoin's price up by about 600% from $9,000 to $63,000 by April 2021. However, it is important to note that volatility followed, as the price subsequently plunged by 50% within three months.

As bitcoin continues its extraordinary ascent, breaking through all-time highs, investors are reminded that what goes up must eventually come down. The impending halving event brings both excitement and apprehension, as the market braces itself for potential fluctuations in the price of this highly coveted digital asset.