The largest cryptocurrency in the world, Bitcoin, momentarily reached a record-breaking high of over $69,000.
Bitcoin’s value had crashed to $16,500 by 2022, surpassing the previous high set in November 2021. Major US financial institutions have made significant investments in Bitcoin purchases, which has caused a recent price surge.Before retreating, the cryptocurrency on Tuesday saw a spike to about $69,200 at 15:00 GMT. It was trading at about $62,185 by 21:00 GMT. According to CoinMarketCap, the value of Bitcoin has increased by more than 50% in the last month.
Professor of finance at Sussex University Carol Alexander said that although the price of Bitcoin might break its most recent high, she cautioned that cryptocurrencies are notorious for their extreme volatility.”Many times in the past, the price crash coincided with ordinary investors purchasing Bitcoin during the bubble, resulting in their losses,” she told the BBC.Another noteworthy development in the tumultuous history of Bitcoin is the recent milestone.
The real identity of the person or group known as Satoshi Nakamoto, who created it in 2009, is still unknown. Bitcoin is a digital currency that was first intended to function independently of governments and traditional financial institutions. It represents an anti-establishment ideology that encourages independence from preexisting power structures.
But the main cause of its recent rise to an all-time high value is the sizeable investments made by reputable financial institutions. This change happened as a result of US regulators’ grudging approval of several spot Bitcoin Exchange-Traded Funds (ETFs) in January 2024. As a result, big investment companies like Fidelity, Grayscale, and Blackrock were able to offer investment products that were dependent on the price of Bitcoin.
These companies have quickly amassed hundreds of thousands of bitcoins, greatly increasing their value.Professor Alexander told the BBC that these new players are drawing institutional investors into Bitcoin, which is driving up the price of the cryptocurrency significantly.Furthermore, she mentioned that the value of Bitcoin might be impacted by the impending “halving” event, which is scheduled for April. She clarified that historically, these occurrences have accompanied price increases.
Wild fiuctuations:-
Many Bitcoin owners will probably rejoice when their wealth rises sharply. But historical evidence suggests they should also be ready for any fluctuations.Bitcoin’s value crashed to 18-month lows in June 2022, almost hitting $20,000, as investors fled riskier assets in the face of a dire outlook for the world economy. When FTX, a significant cryptocurrency exchange started by “king of crypto” Sam Bankman-Fried, filed for bankruptcy in November 2022, the price of cryptocurrencies saw further drops later that year.Bitcoin saw highs and lows throughout 2023, but by the end of the year, it had recovered to trade above $40,000.
Even in Central America, where Nayib Bukele, the president of El Salvador, has embraced Bitcoin, people have noticed the fluctuations. Bukele has set aside more than $100 million in public funds from his country to buy almost 3,000
Due to investors’ flight from riskier assets amid a bleak outlook for the global economy, Bitcoin’s value fell to 18-month lows in June 2022, nearly reaching $20,000. The price of cryptocurrencies fell even lower in November 2022 after FTX, a big cryptocurrency exchange founded by “king of crypto” Sam Bankman-Fried, filed for bankruptcy.
