London
CNN
—
Bitcoin is back with a $1 trillion rally.
The value of the world’s most popular cryptocurrency has more than tripled since November 2022 to $52,000. The year was marked by the high-profile collapse of cryptocurrency exchange FTX. liquidity crisis In some small cryptocurrency companies.
As Bitcoin Rise in 2023, Investors came back in large numbers In recent weeks, the asset’s market capitalization has exceeded $1 trillion for the first time since its heyday in 2021, based on data From CoinMarketCap. In contrast to traditional currencies, Bitcoin’s supply is limited and is expected to peak in 2140, according to cryptocurrency price tracking websites.
The inflow into Bitcoin has been fueled by the recent launch of exchange-traded funds (ETFs) that invest directly in cryptocurrencies, making it easier for retail investors to put money into Bitcoin assets. Bitcoin’s value has risen nearly 13% since January 10, the US regulator said. gave the green light To investment companies wishing to offer such funds.
Bitcoin is far from its all-time high of $69,000, set in November 2021, but industry insiders say talked recently In an interview with CNN, he predicted that the rise would continue this year and could even surpass that peak.
Part of the bullishness lies in Bitcoin’s upcoming “halving.” This is a design feature of Bitcoin that automatically halves the rate of new coins entering circulation, an event that occurs approximately every four years.
“Historically, halvings have always resulted in some bullish price action,” Gareth Rose, a former deputy superintendent at the New York State Department of Financial Services, said last week.
But Bitcoin’s recent rally won’t change an inconvenient truth for investors. That means Bitcoin is risky, volatile in value, and still subject to regulatory scrutiny.
In January, before approving a Bitcoin exchange-traded fund, U.S. Securities and Exchange Commission Chairman Gary Gensler said: said in X: “Many major platforms and crypto assets have gone bankrupt or lost value. Investments in crypto assets remain at significant risk.”
