Due to easier access to trade and a declining value of the US dollar, bitcoin reached an all-time high of $72,000 on Monday.
This increase was a continuation of the incredible performance that occurred last week, when Bitcoin reached $68,991, surpassing its previous top from November 2021.
Exchange-traded funds (ETFs) that track the spot price of Bitcoin were legalized by US authorities earlier this year, making it simpler for regular investors to include the virtual currency in their portfolios.
“This remarkable surge is largely attributed to the escalating institutional interest in the crypto space. The advent of Bitcoin ETFs has revolutionized the landscape, enabling traditional investors to seamlessly access crypto through familiar channels. As the digital asset ecosystem continues to mature, we’re witnessing a notable shift in investor sentiment towards these virtual digital assets. This milestone reinforces our steadfast belief in the transformative potential of blockchain technology and the considerable promise Bitcoin holds as a store of value and a hedge against uncertainty,” stated Sumit Gupta, Co-founder at CoinDCX.
“The growing acceptance of Bitcoin across institutions is acting as a major catalyst for price surge of the token. Investors are looking at this as a move towards greater credibility for the asset. For example, today the London Stock Exchange announced that they would accept Bitcoin and Ethereum Exchange-Traded Notes (ETNs) this year. There is greater liquidity in the market with Tether’s $2 billion dollar USDT freshly infused, indicating the increased demand for Bitcoin among ETFs. The ecosystem is bracing itself for new highs and trying to enter the market for better gains,” added Rajagopal Menon, VP at WazirX.
What’s leading to the surge of Bitcoin prices?
The dollar’s decline, stoked by Friday’s US jobs report that bolstered hopes that the Federal Reserve would move forward with interest rate cuts beginning in June, contributed to the further spike in Bitcoin prices.
As of right now, the price of bitcoin has increased by around 70% from its January value of about $43,000. But after the cryptocurrency exchange FTX collapsed in November 2022, it saw a sharp decline to $15,000.
An continuing legal dispute in London questions whether Australian computer scientist Craig Wright is, in fact, the brains behind bitcoin, raising doubts about the veracity of Nakamoto’s identity. According to Wright, he is Nakamoto, the person behind the 2008 white paper that popularized bitcoin.
