Bitcoin‘s value has soared to over $60,000 for the first time in more than two years, marking a significant milestone in the world of cryptocurrency. This surge comes as a result of a rally in electricity, propelling the largest crypto currency to its highest level to date.
Bitcoin’s Journey: From $60,000 to $63,968
On Wednesday, Bitcoin surged by 12.6% to reach $63,968, surpassing the $60,000 mark it had almost touched earlier. This rally has seen a remarkable 42% increase in Bitcoin’s value in the first two months of this year.
Cryptocurrency Market Resurgence
The rapid ascent has revived memories of the crypto bull market, which reached its peak in November 2021 when the token reached a record high of nearly $69,000. Investors, fearing a decline in prices, had become cautious amidst rising valuations.
Insights from Crypto Industry Leaders
Co-founder of blockchain company Sowarum, Timo Liess, expressed disbelief, stating, “This is madness,” and he anticipated further inflow of funds into the token. He added that when people see such rapid increases in a short period, it grabs their attention, leading to increased interest and speculation.
Regulatory Approvals Boost Bitcoin
In January, U.S. regulators approved the operation of spot Bitcoin exchange-traded funds (ETFs), involving major players like BlackRock and Invesco. This move is seen as a smooth path for investors to pour new cash into the crypto market through regulated means, comparing it to evaluating cryptocurrencies against a regulated vehicle. According to K33 Research, there are now 303,000 bitcoins in 11 funds, with a total value of $18 billion, constituting approximately 1.5% of the total Bitcoin supply.
Market Analysis and Predictions
Analyst Simon Peters from eToro mentioned, “We can see the highest level ever broken any day now. The driving force behind it is undoubtedly [Bitcoin funds].”
Impact of Technological Advancements
Chipmaker Nvidia’s breakthrough results in artificial intelligence technology have fueled investor enthusiasm, helping the U.S. and European stock markets reach new heights last week.
Challenges in Crypto Trading Platforms
Cryptocurrency trading platform Coinbase faced accusations of a 10-fold increase in traffic, causing disruptions, including users seeing zero balances in their accounts. Coinbase acknowledged the challenges, attributed them to growing traffic, and assured users that their funds are secure.
Regulatory Scrutiny on Cryptocurrency Companies
Despite ongoing regulatory scrutiny and continuous doubts about major crypto companies, Bitcoin’s value has surged. Last week, the European Central Bank criticized cryptocurrency, stating that the “appropriate value of Bitcoin is still zero.”
Societal Implications of Bitcoin’s Rise
Regarding the societal impact, experts warn that Bitcoin’s renewed boom is a precarious cycle, and mutual losses could be substantial. They emphasize that the current price surge does not indicate stability.
Resilience of the Crypto Industry
Despite scandals in recent years, the crypto industry has thrived. The Securities and Exchange Commission (SEC) imposed a record $4.3 billion fine on the world’s largest crypto exchange, Binance, in November. Binance’s competitor, FTX, faced legal issues, with its founder facing accusations of fraud and money laundering.
Legal Consequences for Crypto Tycoons
This week, FTX’s legal team argued for a reduced sentence for the former crypto tycoon, resulting in only a few years in jail instead of the initially proposed 100 years.
