Bitcoin surges to a new record high as mainstream money flows into crypto

The latest news from New York, as reported by CNN, is as follows:

On Monday, there was a significant increase in the value of Bitcoin, surpassing its previous record high. This rise came after a lengthy period of uncertainty that led people to doubt the long-term viability of cryptocurrencies.

Bitcoin, which is the pioneer and significantly the most popular digital currency worldwide, had a trading price of $68,791. This exceeded the previous highest record of $68,789 achieved on November 10, 2021.

For the last few months, the surge of bitcoin has been boosted due to the endorsement of exchange-traded funds linked with digital assets by regulatory bodies in the US. This created an opportunity for conventional investors to add bitcoin to their portfolios.

Crypto companies had to advocate for several years before receiving approval, which was only given by the Securities and Exchange Commission in a resentful manner. This occurred after a court determined that the reasons the regulator provided for denying bitcoin ETF applications were "unreasonable and unjustifiable."

Eleven bitcoin ETFs, which monitor the current market value of the cryptocurrency, were introduced in January.

In a span of one month, the ETFs have generated over $4.2 billion in fresh inflows, as reported by Bloomberg.

ETFs are tools used for investment that monitor a collection of assets but are traded similarly to stocks. A bitcoin ETF is attractive because it allows investors to access bitcoin via their usual stockbrokerage without needing to create a digital wallet through a cryptocurrency exchange.

Bitcoin is a frontrunner for the bigger crypto market that is worth around $2 trillion, and it has been facing a lot of negative news lately. Several exchanges and lenders have filed for bankruptcy, prices have been wildly fluctuating, and even a once-famous figure in the crypto world, Sam Bankman-Fried, has been found guilty of stealing billions of dollars from customers on his FTX exchange. Unfortunately, this has all led to a damaging reputation for the whole crypto industry.

CoinMarketCap reports that the value of Bitcoin has risen by over 200% in the past year, and it makes up more than 50% of all cryptocurrencies in circulation.

The surge in bitcoin prices has also been driven by the crypto community, who are eagerly expecting greater profits this coming spring after a happening called the "halving." Approximately every four years, the quantity of bitcoin being released reduces by half - a characteristic inherent in the design of the cryptocurrency, which has a limited supply. As the availability of bitcoin gets limited, its worth is predicted to increase.