Bitcoin passes $69,000 to hit new record price
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On Tuesday, the biggest cryptocurrency in the world, Bitcoin, reached a fresh record high of $69,200 in trading.
The cost has gone up significantly after American overseers gave their seal of approval to a set of bitcoin exchange traded funds offered by big names in finance such as Fidelity and BlackRock, which is the biggest asset manager globally.
The influx of fresh investment has caused bitcoin to soar by over 60% since the beginning of this year, propelling the leading digital currency to unprecedented heights and surpassing its previous all-time high recorded in November 2021.
CoinShares, a crypto investment organization, reports that ever since the official release of bitcoin ETFs on January 11, over $7.5 billion of capital has been invested into them.
Jad Comair, the creator of Melanion Capital, a digital asset investor, expressed surprise at the level of attention and excitement surrounding ETFs. By offering spot bitcoin ETFs, investors can access the cryptocurrency without the dangers associated with unregulated crypto exchanges.
The most recent achievement of Bitcoin is a significant turning point for the digital currency. It experienced a severe market crisis in 2022 and plummeted to just $16,000. Skeptics frequently claimed that it was a failed bubble and would never rebound after prominent crypto companies like FTX collapsed.
The rise in bitcoin’s value is not only remarkable, but it also represents a significant change in the way people view the cryptocurrency. According to Comair, those who invest in bitcoin now are much more secure in their decision than they would have been only a few years ago, with their confidence levels reaching five to ten times higher.
Luca Paolini, the chief strategist at Pictet Asset Management, has raised a question regarding the possibility of missing a significant investment opportunity. The current financial situation differs greatly from a few years ago when there were clear indications of a financial bubble.
The value of the token is being influenced by an impending improvement to the bitcoin network, commonly known as the bitcoin halving, set to occur in the following month. This alteration will decrease the number of coins in the marketplace, ultimately pushing the price of bitcoin higher. Supporters of bitcoin are optimistic that this change will maintain the positive trend of the cryptocurrency.
The current surge in bitcoin's value has been quite remarkable, even by its own high standards. It has led many people to draw parallels with 2021, when bitcoin reached its previous peak after a surge of interest from everyday consumers.
According to JPMorgan analyst Nikolaos Panigirtzoglou, the current situation appears to resemble the enthusiastic environment of 2021, in which non-professional investors were propelling an upswing in both cryptocurrency and stock markets. Panigirtzoglou advised that there is a substantial possibility of people withdrawing their profits before next month's bitcoin halving event.
However, even though the value of bitcoin has recently gone up, the crypto industry's most popular token still lacks sufficient liquidity. CCData, a data provider, has disclosed that liquidity on the highest-ranking 21 centralized exchanges is still much lower compared to the levels it had recorded at this time the previous year.
