Bitcoin hit an all-time high on Tuesday, amid excitement in the cryptocurrency sector following the approval of a new type of investment in the US market that is available to a wider audience. The cryptocurrency star rose to $69,191.94, surpassing the previous high of $68,991 recorded in November 2021. “The price of Bitcoin has reached new highs” and continues to rise, said James Hart, an analyst at Tickmill, who said investors remain “resolutely bullish.” about “growth prospects”.
The first cryptocurrency by market capitalization, which currently weighs more than $1,300 billion according to the Coingecko website, has already started a crazy race for several months. Its price has jumped more than 50% since the start of the year alone and has tripled over the past year, an impressive rise following the price collapse that followed the collapse of several industry giants in late 2022. At its previous peak, Bitcoin crashed to around $15,000 in November 2022 following the bankruptcy of exchange platform FTX, which had been the sector’s flagship company until then.
His then-boss Sam Bankman-Fried was accused along with other executives of using client accounts without their knowledge to fuel speculation at his own investment firm. Regulators, still struggling to effectively regulate crypto assets, regularly warn against mirages of colossal profits that could entice buyers to bet big and lose big, or get caught up in fraudulent systems.
In 2017, the previous cycle of frenzied enthusiasm was already followed by a collapse in prices. “Buying after a price spike is rarely a good idea,” says AJ Bell’s Laith Khalaf. “Previous episodes have shown that those who step in when the madness is at its peak suffer enormous losses,” the analyst recalls.
Shopping fever
For several months, the price of Bitcoin has been buoyed by the anticipation of the US markets’ approval of a new investment product, a Bitcoin-indexed investment fund (ETF), which will allow the majority of the population to invest in these crypto assets without any restrictions. holding them directly. The launch of these investments in the United States initially triggered a wave of massive outflows, particularly from investors in the GBTC (Grayscale Bitcoin Trust) seeking to reap their profits once the fund was converted into an ETF.
Since then the trend has changed. Since their launch, this type of fund, such as that of the world’s largest asset manager BlackRock, has amassed “assets that represent more than 3% of all Bitcoin in existence,” Simon Peters, an analyst at eToro, said in an interview with AFP. . The sector also sees the approval as evidence of growing institutional investor interest in cryptocurrencies, further boosting enthusiasm for Bitcoin.
Finally, another upcoming event is supporting prices: the “halving,” a technical phenomenon that involves halving the Bitcoin reward given to Bitcoin “miners”—those who contribute to the creation of the blockchain by validating transactions.
The “halving” occurs every 210,000 blocks—or groups of transactions verified and included in the “blockchain”—which equates to approximately every four years. The next one is scheduled for April. Thus, by reducing the number of bitcoins available for purchase, this phenomenon should increase the value of bitcoins, notes Charles Morris, an analyst at ByteTree.
Source: Le Parisien
I am John Casanova. I am an author at 24 news recorder and mostly cover economy news. I have a great interest in the stock market and have been writing about it for many years. I am also interested in real estate and have written several articles on the subject. I am a very experienced investor and have a lot of knowledge to share with others.
