News Brief
Bitcoin Reaches Record High Value Of Over $69,000 As Investors Show Interest In Cryptocurrencies
Bitcoin marked a remarkable rise of nearly 160 per cent since October.
Bitcoin reached a new record high on Tuesday (5 March), driven by increased investment in United States spot exchange-traded crypto-products and the possibility of a global decline in interest rates.
The world's largest cryptocurrency hit $69,202, surpassing its previous all-time high of $68,999.99 in November 2021, as per a report by The Economic Times.
Investor interest has surged following the Securities and Exchange Commission's approval of 11 spot bitcoin exchange traded funds (ETFs) in late January.
Bitcoin's remarkable rise of nearly 160 per cent since October, with 44 per cent of that growth occurring in February alone, contrasts sharply with 2022 when the market experienced an 18-month crypto winter marked by several high-profile corporate bankruptcies and scandals.
In addition to attracting a broader range of investors, bitcoin and cryptocurrencies have received a boost from expectations of a Federal Reserve interest rate cut, which often leads investors to shift capital into higher-yielding or more volatile assets.
Investors have shown strong interest in cryptocurrencies, mega-cap technology stocks, and investment-grade corporate bonds this year.
Analysts suggest that Bitcoin's price increase may also be attributed to the upcoming halving event in April.
This event occurs every four years and involves halving the rate at which tokens are released, as well as the rewards given to miners.
Bitcoin's supply is limited to 21 million, of which 19 million have already been mined.
Despite its recent popularity, many investors view Bitcoin as too volatile and lacking sufficient real-world applications to be considered anything other than a speculative asset.
Nevertheless, in addition to the influx of money into ETFs, the potential for limited bitcoin supply, and the expected decrease in US interest rates, some companies are adding cryptocurrencies to their corporate reserves.
In February, software company MicroStrategy, a long-time bitcoin holder, announced the purchase of approximately 3,000 more bitcoins for $155 million.
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