Bitcoin, the most used cryptocurrency, exceeded $70,000 this Friday and set a new all-time high, the second in a week, driven by the entry into the market of large investment funds after authorizing USA exchange-traded funds (ETF) linked to that cryptocurrency.
The cryptocurrency touched $70,085 at 4:30 p.m., according to Bloomberg data, surpassing the previous record of $69,191.9, reached last Tuesday.
On Tuesday the first record
The top achieved on Tuesday meant breaking a record in force since November 10, 2021, the date on which bitcoin had reached $68,991.85.
As happened on Tuesday, Bitcoin’s high coincides with a new gold record.
According to the record reached today, the total capitalization of the bitcoin market now rises to 1.37 trillion dollars (1.25 trillion euros), according to data from CoinMarketCap.
Revalued by 80%
Since January 23, when bitcoin fell to its annual low ($38,509), the cryptocurrency has appreciated more than 80%.
Analysts attribute the strong rise in bitcoin to the decision of the SECthe stock market supervisor of EUto authorize the ETF linked to the spot price of this cryptocurrency.
From that moment on, the flow of investment from large funds to the bitcoin market has skyrocketed.
Other factors mentioned by analysts are the possibility of a drop in interest rates and the proximity of a new ‘halving’ (the halving of the reward obtained by bitcoin ‘miners’), scheduled for April.
€61,199.65
— Bitcoin (@Bitcoin) March 8, 2024
Bitcoins are generated in a decentralized way
Unlike what happens with currencies issued by central banks, the creation of bitcoins is carried out in a decentralized manner through a process known as “mining”.
Historically, after a halving, bitcoin has appreciated.
ETF legislative amendment
On January 10, the SEC approved a legislative modification that allows creating ETF linked to the spot price of bitcoin.
Among the fund managers that had requested authorization to create this type of ETF giants of the sector included BlackRock, Fidelity y Grayscale.
A day later, on January 11, bitcoin skyrocketed to over $49,000. However, on January 12, the cryptocurrency plummeted and was down around 6%.
Bitcoin then began a downward path that led it to lose the $39,000 level on January 23, a trend that has reversed in recent weeks. EFE
#Bitcoin #exceeded
