Bitcoin price breaches 42,000 dollars for first time in nearly two years
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On Monday, the value of bitcoin exceeded $42,000, which was the highest level it has achieved in approximately 20 months. There is strong belief that Americans will soon have easier access to invest in this digital currency using more conventional methods.
One bitcoin reached a peak of 42,089 US dollars this morning, which is the highest it has been since the beginning of April 2022.
This refers to the fact that the value of bitcoin has drastically increased by approximately 50% within a period of less than 60 days.
The previous week, Grayscale Investments, a company that serves as an asset manager, had a meeting with the US Securities and Exchange Commission (SEC) about their Bitcoin Trust.
Grayscale is currently attempting to transform the trust into an exchange-traded fund (ETF), just like many other investors who are interested in creating a bitcoin ETF in the United States.
The concept of an ETF is to monitor the value of a specific asset, which is currently bitcoin.
This means that investors can place wagers on bitcoin without possessing the digital currency.
This would basically enable them to put their money into bitcoin just like they would with a typical stock.
They wouldn't need to handle a cryptocurrency exchange.
One of the exchanges, known as FTX, experienced a collapse last year.
The previous month, Sam Bankman-Fried, the person who established it, was convicted of committing fraudulent acts.
The judgment on his case is still pending.
Simon Peters, a market analyst at eToro, reported that Bitcoin had a fantastic weekend. It experienced a massive surge, surpassing the remarkable $41,000 mark, keeping up its recent strong performance.
Investors are keenly waiting for the launch of the bitcoin ETF market, causing the cryptoasset to surpass its highest level of early April 2022.
At the same time, the value of gold rose to its all-time high on Monday morning, reaching approximately 2,134 dollars per ounce.
Afterwards, it returned most of the progress it had made.
According to Interactive Investor's head of investment, Victoria Scholar, the value of gold has hit a new record for two consecutive days, reaching over 2,100 US dollars per ounce.
Up until now in 2021, the valuable metal has increased approximately 13.5%, and has accumulated approximately a 5% rise within the last 30-day span.
Investor demand for safe-haven assets such as gold has increased due to worries over the unstable global economy and the conflict between Israel and Hamas.
Furthermore, the US dollar is experiencing a reduction in value and is presently trading at its lowest point in approximately three months due to predictions of Federal Reserve rate reductions in the upcoming year. As a result, gold has become more appealing.
