Bitcoin has reached a milestone by surpassing the coveted $60,000 mark for the first time in over two years. This surge is driven by growing optimism that more people are interested in buying digital currency beyond just dedicated fans of cryptocurrencies.
Rising Value and Investor Interest
Currently trading at about $60,301, Bitcoin is inching closer to its all-time high of $68,991 set in November 2021. Its value has surged over 40% this year, partly due to the successful launch of exchange-traded funds (ETFs) in the US, which allow everyday investors to easily access and invest in Bitcoin, similar to buying stocks or mutual funds.
Impact of ETF Launch
The anticipation of the approval of these new investment products has contributed to the recent increase in Bitcoin’s price. This comes after a downturn in 2022 caused by the bankruptcy of several major cryptocurrency companies.
Optimism Surrounding Supply Reduction
There’s also optimism around the upcoming halving of Bitcoin’s supply growth, expected in late April, which would decrease the number of new coins produced daily. This has fueled a prolonged rally and increased interest in other cryptocurrencies like Ether and Dogecoin.
Bitcoin’s Performance Compared to Traditional Assets:
In 2024, bitcoin has performed better than conventional assets like stocks and gold. Its rising value has been supported by expectations that the US Federal Reserve may lower interest rates as inflation decreases.
Increased Institutional Interest
Institutions are showing more interest in Bitcoin, with MicroStrategy purchasing 3,000 bitcoins for $155 million and Reddit also buying small amounts of Bitcoin and Ether.
Bitcoin is created, or “mined,” as a reward for validating transactions on the blockchain using powerful computers to solve complex problems. With the value of all Bitcoin in circulation surpassing $2 trillion, Bitcoin continues to gain traction as a valuable digital asset.