The digital currency Bitcoin exceeded the $60,000 threshold on Wednesday for the first time in two years. This continues a rally in the most important cryptocurrency that began in January. Just two weeks ago, digital money broke the $50,000 mark. Bitcoin is currently still around $9,000 away from its all-time high, which was reached on November 10, 2021. A year later, however, the price had plummeted to under $17,000.
According to market experts, the current interest was primarily triggered by the approval of special Bitcoin funds in the USA. These Bitcoin ETFs were approved by the US Securities and Exchange Commission in January. These Bitcoin spot ETFs are novel because they allow investors to invest in Bitcoin without having to directly purchase or hold the digital currency itself.
An event that is scheduled for April is also likely to play a role in the price development: the next so-called “Halving”. The reward that Bitcoin miners receive for verifying crypto transactions is halved. Ultimately, the process leads to a slower growing supply of Bitcoin, which has resulted in rising prices in most of Bitcoin’s history. Experts also think prices of over $100,000 are possible, including Bitpanda CEO Eric Demuth.
However, there are also warning voices, such as the German consumer advice center. Consumer advocates recently explained that Bitcoins are not recommended as an investment due to the risks – from strong price fluctuations to total loss.