Bitcoin surges above $42,000 ahead of expected SEC decision
On Monday, the value of Bitcoin went beyond $42,000, which is its highest price since 2023. This amount has not been observed in the last 20 months.
There has been an increase recently in the interest and demand for Bitcoin. This growth is due to the SEC's engagement with various asset managers, including Blackrock, regarding the approval of a Bitcoin exchange-traded fund. This approval would allow traditional stock market investors to indirectly invest in Bitcoin.
Besides being approved by regulators, specialists in the field are observing that current controversies and the subsequent removal of corrupt individuals from the industry, along with an impending halving occurrence, are boosting the faith of investors.
Nigel Green, the CEO of deVere Group, which is located in Zurich, made a statement:
The occurrence of the CZ/Binance scandal and the downfall of FTX lasting a month, which ultimately found Sam Bankman-Fried guilty of seven charges of fraud and conspiracy, caused some temporary fluctuations in the market. Despite this, the cryptocurrency market has persevered and remains optimistic.
Actually, the value of Bitcoin has increased by more than 150 percent since the beginning of the year.
It seems that law enforcement and regulators around the world are taking action against digital currency executives and companies. This increased control is attractive to investors who are investing heavily in cryptocurrencies like Bitcoin.
In addition, it could prove to be appealing to large-scale investors who can provide significant financial resources.
Apart from the approval of regulations and eliminating competition, there is another important factor that influences the trust of investors, which is the approaching halving occurrence.
One important aspect of Bitcoin's monetary policy is its limited supply. Only 21 million Bitcoins can ever be created, and the amount of circulating Bitcoins is gradually decreasing as time goes on.
In the past, people who mined Bitcoin at the beginning of its emergence received 50 Bitcoins as a form of reward for every block they managed to mine. But after a certain time, this reward would decrease by half approximately every four years.
In the past, the timeframe leading up to a halving occurrence has been the most lucrative period for people who invest in cryptocurrencies. It's projected that the subsequent halving event will transpire in April of 2024.
At 11:45 GMT, the current trading price for Bitcoin stands at $41,609.30.
