Bitcoin Hits $60,000 Approaching a Record Peak

For the first time since November 2021, Bitcoin has hit $60,000, nearing a new peak! Early on Wednesday afternoon, the price of one Bitcoin reached $60,650, following several days of significant growth.

Approaching its record high of $67,707 set on November 9, 2021, Bitcoin has seen a revival. New products introduced in the US, such as exchange-traded funds, have largely contributed to its resurgence after a price drop in late 2022. Those products enable individuals to follow Bitcoin’s value without directly owning the cryptocurrency.

Since January 2024, Bitcoin has surged 42% and 20% since Saturday, reaching November 2021 levels. Despite its volatility, nearly five million Britons have invested in cryptocurrencies, though 45% faced losses before April 2022.

The recent increase in Bitcoin’s value precedes the upcoming “halving” event in April, which will see the creation of new Bitcoins entering the market halved. This mechanism aims to decelerate Bitcoin’s issuance, given its total supply limit of 21 million tokens, with 19 million already in existence. Currently, miners generate about 900 new Bitcoins daily. However, this number will decrease to 450 after the halving.

Analysts attribute the recent boost in Bitcoin values to a “renewed optimism in the asset class,” as Bivu Das from Kraken stated. Additionally, a slowdown in trading activity has played a role. According to Simon Peters from eToro, the price surge follows a period of market consolidation. This is influenced by a decrease in purchases by spot ETFs. Early in the year, a security breach and a false announcement on the SEC’s Twitter account regarding Bitcoin ETF approvals led to a spike in prices. Bitcoin, not governed by any central authority, remains prone to significant price fluctuations.