“The meteoric rise of Bitcoin prices this year has left investors in awe, and with new innovative investment avenues emerging, the potential for even higher prices seems tantalizingly within reach.”
Bitcoin Surges to Almost $35,000, Highest Point in Nearly 18 Months
Bitcoin, the world’s largest cryptocurrency, has experienced another surge, reaching almost $35,000 this week. This marks its highest point in nearly 18 months and more than double the price at the beginning of 2023.
During the start of the pandemic, Bitcoin’s price skyrocketed from just over $5,000 to nearly $68,000 in November 2021. However, prices dropped due to aggressive rate hikes from the Federal Reserve and the collapse of FTX, one of the biggest companies in crypto.
Investors began returning to Bitcoin this year as inflation started to cool. The collapse of prominent tech-focused banks also led more investors to turn to cryptocurrency.
There is rising optimism about the possibility of Bitcoin exchange-traded funds (ETFs) being launched. ETFs are pooled investment securities that can be bought and sold like stocks. While federal regulators have not given the green light yet, recent wins for some crypto fund managers with applications for Bitcoin spot ETFs have improved the odds for approval, possibly in the coming months.
The District of Columbia Court of Appeals recently ordered the Securities and Exchange Commission to reconsider the ETF for Grayscale’s Bitcoin fund. This decision, along with the listing of BlackRock’s iShares Bitcoin Trust, has contributed to the recent surge in Bitcoin’s price.
However, it’s important to note that cryptocurrency remains a risky investment. Bitcoin is known as the most volatile asset class, with unpredictable fluctuations in value. The collapse of FTX has also shaken public confidence in the crypto industry.
While interest in Bitcoin is returning, it is not at the same level as before. Institutional money, such as hedge funds, now dominates crypto investing. Future regulations will play a significant role in shaping the industry.
Although the prospect of spot ETF approval has driven the recent increase in Bitcoin’s price, it is uncertain whether this trend will continue. A regulatory green light does not guarantee sustained gains.
As of now, the price of Bitcoin stands at around $34,789.