Bitcoin reaches new record high, surpassing $69,000

Bitcoin, the world's leading cryptocurrency, achieved a new all-time high, momentarily exceeding $69,000.

Publication: 07.03.2024 - 14:54
Bitcoin reaches new record high, surpassing $69,000
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This milestone surpassed the previous record set in November 2021, before Bitcoin's value dropped to $16,500 in 2022. The recent price surge is attributed to major U.S. financial institutions investing billions in Bitcoin.

The cryptocurrency's value reached approximately $69,200 shortly after 15:00 GMT on Tuesday but later declined. By 21:00 GMT, it was trading at around $62,185. Over the past month, Bitcoin's value has soared by more than 50%, according to CoinMarketCap, a cryptocurrency market data platform.

Carol Alexander, a finance professor at Sussex University, suggests that Bitcoin's price could climb even higher than its latest peak but cautions that the cryptocurrency market is "notoriously volatile." She highlighted the risk of price crashes that predominantly affect ordinary investors who buy during the market's peak periods.

This record-setting moment marks another chapter in Bitcoin's eventful history since its 2009 inception by the mysterious Satoshi Nakamoto. Initially envisioned as a new form of internet currency and embodying an anti-establishment philosophy, Bitcoin's recent highs are ironically due to significant investments from established financial firms.

This influx of investment was facilitated by the U.S. regulatory approval of several spot Bitcoin Exchange-Traded Funds (ETFs) in January 2024, enabling large investment firms such as Blackrock, Fidelity, and Grayscale to offer Bitcoin-based products. These firms have since acquired hundreds of thousands of bitcoins, significantly driving up its value.

Professor Alexander noted that these new market entrants are drawing institutional investors to Bitcoin, applying considerable upward pressure on its price. She also mentioned that the upcoming "halving" event in April might further influence Bitcoin's valuation, historically associated with price increases.

Bitcoin's journey has been marked by extreme volatility. After plummeting to 18-month lows near $20,000 in June 2022 amid a global economic downturn, its value further declined following the bankruptcy of the cryptocurrency exchange FTX in November 2022. Despite these fluctuations, Bitcoin managed to recover, trading above $40,000 by the end of 2023.

Bitcoin's volatility is closely monitored not only by companies and individual investors but also by governments. In El Salvador, President Nayib Bukele has heavily invested in Bitcoin, purchasing almost 3,000 bitcoins with over $100 million of public funds. This investment has now appreciated by approximately 60%, although detailed public records remain undisclosed.

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