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Bitcoin exceeds US$70,000 and marks the second all-time high in a week

He bitcointhe most used cryptocurrency, exceeded $70,000 this Friday and set a new all-time high, the second in a week, driven by the entry into the market of large investment funds after the United States authorized linked exchange-traded funds (ETFs). to that cryptocurrency.

The cryptocurrency touched US$70,085 at 4:30 p.m., according to Bloomberg data, surpassing the previous record of US$69,191.9, reached last Tuesday.

However, from that moment on, bitcoin has deflated and was around US$68,300 at 6:30 p.m.

The top achieved on Tuesday meant breaking a record in force since November 10, 2021, the date on which bitcoin had reached US$68,991.85.

As happened on Tuesday, bitcoin’s high coincides with a new gold record.

According to the record reached today, the total capitalization of the bitcoin market now rises to 1.37 trillion dollars (1.25 trillion euros), according to data from CoinMarketCap.

Since January 23, when bitcoin fell to its annual low ($38,509), the cryptocurrency has appreciated more than 80%.

Analysts attribute the strong rise in bitcoin to the decision of the SEC, the US stock market supervisor, to authorize ETFs linked to the spot price of this cryptocurrency.

From that moment on, the flow of investment from large funds to the bitcoin market has skyrocketed.

Other factors mentioned by analysts are the possibility of a drop in interest rates and the proximity of a new ‘halving’ (the halving of the reward obtained by bitcoin ‘miners’), scheduled for April.

Unlike what happens with currencies issued by central banks, the creation of bitcoins is carried out in a decentralized manner through a process known as “mining”.

Historically, after a halving, bitcoin has appreciated.

“The cryptocurrency par excellence continues to rise strongly as the ‘halving’ approaches,” emphasizes Javier Cabrera, XTB analyst.

In his opinion, although “bubble drums are still heard, the market is already assimilating that, after more than fifteen years of history, the asset is finding a place in the portfolios of important institutional investors.”

“Although it still has a speculative component, bitcoin has the characteristics to become a store of value in the future,” says Cabrera.

On January 10, the SEC approved a legislative modification that allows the creation of ETFs linked to the spot price of bitcoin.

Among the fund managers that had requested authorization to create this type of ETF were giants in the sector such as BlackRock, Fidelity and Grayscale.

A day later, on January 11, bitcoin skyrocketed to over $49,000. However, on January 12, the cryptocurrency plummeted and was down around 6%.

Bitcoin then began a downward path that led it to lose the level of US$39,000 on January 23, a trend that has reversed in recent weeks.

Source: Elcomercio

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