Since April 2022, bitcoin has risen to $41,000

5 min read

On Monday, the financial markets experienced a rollercoaster ride that could not be predicted. Following a record high of $2,100 per ounce per ounce for gold, stocks and bonds both plummeted in value after hitting a record high. 

Unlike many digital assets such as stocks, Bitcoin remained in the lead when it comes to digital asset valuations, surpassing $41,000 for the first time in more than a year and having witnessed a startling 150% increase in value in just one year.

In light of its volatility, Bitcoin’s rise has been impressive, especially when compared to other cryptocurrencies. The price of the drug started at just over $5,000 at the start of the epidemic and soared to almost $68,000 in November 2021, when it reached its peak. Due to a string of rate increases by the Federal Reserve as well as FTX’s collapse, its value decreased significantly. 

Across the financial markets, Monday was a day full of wild rides. In the midst of a stock and bond market crash, gold took a sharp turn after reaching a record high above $2,100 per ounce in just a few short hours. As for the world of digital-assets, Bitcoin rose to the top of the charts for the first time in over a year, breaking the $41,000 barrier for the first time since 2012, and marking an astonishing 150% increase in value this year alone.

Given Bitcoin’s volatility, it is remarkable that Bitcoin has grown so rapidly in the last few years. It peaked in November 2021 at almost $68,000, a significant increase from just over $5,000 upon the onset of the pandemic. As a consequence of the Federal Reserve’s series of rate hikes and the collapse of FTX, its price plummeted. However, recent spikes in the price of Bitcoin have been attributed to the anticipation of the SEC’s approval that exchange-traded funds (ETFs) will be able to directly buy the cryptocurrency, as well as the United States Securities and Exchange Commission’s (SEC’s) approval. Yiannis Giokas, a senior economist at Moody’s Analytics, told Reuters that the spike in bitcoin exchange-traded funds (ETFs) is because of the large number of applications that are expected to be approved by the SEC in the next couple of weeks for spot Bitcoin ETFs.

Bitcoin’s price increased significantly during the day, reaching $32,144 during the course of the day and settling at $41,803 by the time 4 p.m. had passed in New York. There is no doubt that this recovery represents one of the biggest annual rises since 2020. It is also worth noting that other cryptocurrencies, including Ether and Dogecoin, also had notable increases, while Bitcoin Cash gained 9% over the same period.

BlackRock Inc. and others are among the first to announce their intention to launch Bitcoin ETFs in the US, and the industry is eagerly awaiting their announcements.

In spite of previous enforcement actions and regulatory crackdowns aimed at cryptocurrency exchanges and figures, analysts are viewed as necessary steps towards a mature and more developed cryptocurrency market in the future despite the actions being initiated.

There are, however, some risks involved as well. If interest rate forecasts change or if problems occur with the ETFs, the rise in Bitcoin might be derailed. It appears that technical indicators are also suggesting that there is a possibility that the currency has gained too much in value.

That news provided by timenews.

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