Bitcoin Hits $60,000 Approaching a Record Peak

For the first time since November 2021, Bitcoin has hit to $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. After a price drop in late 2022, its resurgence is largely attributed to the introduction of new products in the US, such as exchange-traded funds, which enable individuals to follow Bitcoin's value without directly owning the cryptocurrency.

Since the beginning of 2024, Bitcoin has surged by 42% and by 20% since Saturday, reaching levels not seen since November 2021. Known for its fluctuations, data from the UK's Financial Conduct Authority indicates that nearly five million Britons have invested in cryptocurrencies. However, in the year leading up to April 2022, 45% of these investors experienced losses.

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, around 900 new Bitcoins are generated daily, but post-halving, this number will reduce to 450.

Analysts attribute the recent boost in Bitcoin values to a "renewed optimism in the asset class," as stated by Bivu Das from Kraken. 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, 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.