“Bitcoin’s meteoric rise continues as it experiences another momentous surge, with prices doubling this year, captivating both seasoned investors and newcomers alike.”
Bitcoin, the world’s largest cryptocurrency, has experienced another surge in value, reaching nearly $35,000 this week. This marks its highest point in almost 18 months and is more than double the price at the start of 2023.
During the pandemic, Bitcoin saw a significant increase in value, going from just over $5,000 each to nearly $68,000 in November 2021. However, prices declined due to rate hikes from the Federal Reserve and the collapse of FTX, one of the biggest companies in the crypto industry.
At the beginning of 2023, the value of Bitcoin dropped to less than $17,000, losing over 75 percent of its value. But as inflation started to cool, investors began returning to the cryptocurrency market. Additionally, the collapse of tech-focused banks led more investors to turn to crypto, seeking alternatives to traditional investments.
Now, Bitcoin is receiving another boost with the possibility of introducing exchange-traded funds (ETFs) for the cryptocurrency. ETFs are investment securities that can be bought and sold like stocks, offering a new way for investors to enter the crypto market. Although approval from federal regulators is still pending, recent wins for crypto fund managers with applications for bitcoin spot ETFs have improved the odds of approval.
The District of Columbia Court of Appeals recently ordered the Securities and Exchange Commission (SEC) to reconsider Grayscale’s bitcoin fund ETF application. The SEC had previously rejected the application, citing concerns about investor protections. The SEC did not appeal the court’s decision.
The recent surge in Bitcoin’s value can also be attributed to the listing of BlackRock’s iShares Bitcoin Trust by the Depository Trust and Clearing Corporation. This development gained attention online and likely contributed to the surge.
It’s important to note that social media chatter and misinformation can significantly impact crypto trading. For instance, a false post on Twitter claiming that the SEC had approved iShares’ spot bitcoin ETF briefly caused a spike in Bitcoin’s price.
Despite the excitement surrounding Bitcoin, it remains a risky investment. Experts consider it the most volatile asset class, with unpredictable fluctuations in value. Investors can both make and lose money quickly.
The collapse of FTX, a major crypto exchange, has also shaken public confidence in the industry and affected retail investors. Institutional money, such as hedge funds, currently dominates the crypto market.
In conclusion, Bitcoin’s recent surge in value is fueled by optimism about the possibility of introducing bitcoin spot ETFs. However, investing in crypto remains risky, and caution should be exercised when entering the market.