This article was originally published on forbes.com.

In an extraordinary display of resilience, bitcoin has once again shattered records by reaching a new all-time high, surpassing the $70,000 mark.

This monumental achievement, having set a previous all-time high of about $69,000 in November of 2021, showcases bitcoin’s ability to grow in an economic environment very different from the one in which its last all-time high was reached.

Historically, bitcoin's price movements were often attributed to the macroeconomic environment fostered by “Zero Interest Rate Policy,” sometimes called ZIRP, a Federal Reserve policy that encouraged investors to seek higher yields in riskier assets. Because bitcoin rallied during this time, it was taken as a given by many investors and opinion-makers that the easy money of the ZIRP era and the COVID cash airdrops sent bitcoin on its rapid ascent to $69,000.

However, the current economic climate presents a significant departure from those conditions. Interest rates have climbed as central banks around the world tighten monetary policy to combat inflation, a scenario typically unfavorable for risk-on assets. Yet, bitcoin has defied expectations by continuing its upward trajectory, suggesting a decoupling from traditional financial market trends and highlighting its maturing as an independent asset class.

Bitcoin’s recent price appreciation has been fueled by a combination of factors that highlight the unique position it holds in the financial world. Firstly, the increasing adoption of bitcoin by mainstream financial institutions has significantly bolstered its value and legitimacy. Major financial entities offering bitcoin as part of their investment portfolios have sent a strong signal to the market, reinforcing its viability as a store of value.

The fact that bitcoin has surged in the current economic climate may mean that its value as an asset that exists outside of the traditional dollar system is finally being recognized by the market. In times of inflation and financial uncertainty, investors are increasingly turning to bitcoin as a hedge against economic instability.

Bitcoin’s digital scarcity, with the halving only a few weeks away, contrasts sharply with the ability of central banks to print fiat currency without limit, making bitcoin an attractive alternative for those seeking to preserve their wealth.

The purchasing power of the dollar has degraded so rapidly over the past few years that, if you account for inflation, the true all-time-high for bitcoin’s purchasing power won’t be reached until it is priced above $79,000. This in itself is a shocking reality check about the health of the dollar – and its future.

Although volatility will continue to be a harsh reality for this asset, and the class of digital assets generally, the underlying factors driving its acceptance and value proposition suggest a bright future for those invested in its journey. As the landscape evolves, bitcoin's role in the broader financial ecosystem will likely continue to expand.