“Bitcoin’s meteoric rise is rewriting the rules of finance, as the world’s most popular cryptocurrency soars to new heights, captivating investors and skeptics alike.”
Since January, the price of Bitcoin has doubled, going from $16,500 to $34,600. This surge in value is significant, as Bitcoin has not reached this level since April 2022 when it started sliding from its all-time high of over $68,000 in late 2021.
According to Josh Gilbert, a market analyst at trading platform eToro, Bitcoin has been the best-performing asset class this year. A recent trading survey conducted by his company showed that investors are bullish on cryptocurrencies, making them their preferred asset for the fourth quarter.
Bitcoin’s resilience is even more notable when compared to the recent sell-off and “sea of red” experienced by global stocks. While traditional markets faced a decline, Bitcoin continued to defy critics.
The surge in the value of crypto assets can be attributed to a US court ruling in August that cleared the path for the nation’s first Bitcoin exchange-traded fund. This ruling opens the door to an investment product that investors have been demanding for years. A spot Bitcoin ETF would allow traditional investors to have exposure to the digital asset without actually owning it.
Bitcoin’s change in fortunes comes after a year of decline, with market sentiment further impacted by the collapse of crypto exchange FTX and the fraud charges against its founder, Sam Bankman-Fried. Bankman-Fried, a onetime crypto billionaire, has pleaded not guilty to seven federal counts related to stealing billions of dollars from customers of his FTX exchange. Prosecutors claim he diverted these funds to purchase luxury real estate and cover losses at his other firm, Alameda Research, a crypto trading house.
Overall, Bitcoin’s recent price surge and its resilience in the face of market challenges highlight its position as a leading asset class and its potential for growth in the future.