Bitcoin Briefly Reaches A New All-time High. Bitcoin, the world’s largest cryptocurrency, briefly achieved a new record high, surpassing $69,000 in price.
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It exceeded the prior record established in November 2021, though its value had dwindled to $16,500 by 2022. The recent upswing in value has been instigated by major US financial institutions channeling billions into Bitcoin acquisitions.
The cryptocurrency surged to approximately $69,200 around 15:00 GMT on Tuesday before retracing to trade at roughly $62,185 by 21:00 GMT. Over the last month, Bitcoin’s value has surged by over 50%, as indicated by data from the CoinMarketCap cryptocurrency market platform.
Professor Carol Alexander from Sussex University noted the potential for Bitcoin’s price to climb even higher but cautioned about its notorious volatility. She expressed concern that the timing of past price crashes has often left ordinary investors who bought during the bubble at a loss.
Bitcoin Emerged
This new record marks another significant chapter in Bitcoin’s tumultuous history. Invented in 2009 by an entity known as Satoshi Nakamoto, its true identity remains shrouded in mystery. Originally conceived as a means to create internet-based currency, Bitcoin emerged from an anti-establishment ethos advocating freedom from the existing power structures of financial institutions and governments.
Ironically, its current all-time high value is the result of substantial investments from established financial firms, made possible by the approval of spot Bitcoin Exchange-Traded Funds (ETFs) by US regulators in January 2024. This move allowed major investment firms like Blackrock, Fidelity, and Grayscale to sell products based on Bitcoin’s price, rapidly increasing its value.
Professor Alexander highlighted the impact of these institutional investors on Bitcoin’s price, attributing a significant upward pressure to their entry into the market. However, she also pointed out the potential influence of Bitcoin’s upcoming “halving” event in April on its value.
While many Bitcoin holders may be celebrating their newfound wealth, history suggests caution. Bitcoin’s value plummeted to 18-month lows of nearly $20,000 in June 2022 and faced further decline when the FTX cryptocurrency exchange collapsed into bankruptcy in November 2022.
El Salvador’s president, Nayib Bukele, who has openly embraced Bitcoin, invested over $100 million of his nation’s funds in acquiring almost 3,000 bitcoins. The current value of his investment is estimated to be around 60% more than the initial purchase, though specific details remain undisclosed.
