Bitcoin reached a fresh record high above $72,000 on Monday, fueled by increased accessibility for trading and a decline in the value of the US dollar.
According to AFP, the cryptocurrency unit struck $72,717, which was bolstered by anticipation surrounding an upcoming industry event that typically restricts the supply of Bitcoin, driving its price upward.
(Photo : Marco Bello/Getty Images)
Bitcoin Shatters All-Time High Set in 2021
Last week, Bitcoin's price soared to $69,191.94, surpassing its previous record of $68,991 set in November 2021, and it continues to make a remarkable rise.
The momentum continued on Monday after Britain's Financial Conduct Authority watchdog said it would join US regulators by permitting the creation of crypto-related securities.
Earlier this year, US authorities approved exchange-traded funds (ETFs) pegged to Bitcoin's spot price, making it easier for investors to add the unit to their portfolio.
Analysts interpreted these developments as a sign of cryptocurrency's growing acceptance, not only for Bitcoin but also for other established coins.
Bitcoin's value is partly derived from the process of "mining," where complex computational problems are solved to validate transactions on the blockchain.
However, the upcoming "halving" event, scheduled for next month, is expected to reduce the reward given to Bitcoin miners, thereby tightening the supply of new Bitcoins entering the market.
The anticipation of the halving event has contributed to Bitcoin's recent surge, alongside strong inflows into Bitcoin ETFs. According to City Index analyst Fiona Cincotta, analysts noted that Bitcoin's price has skyrocketed by 350 percent from its 2022 low, fueled by institutional investor interest and retail investors' fear of missing out (FOMO).
Can Bitcoin Reach $100,000
While some experts predict that Bitcoin could reach $100,000, they caution against its extreme volatility and the potential for rapid price fluctuations, the AFP reported.
The weakening US dollar also provided momentum for Bitcoin, as positive US jobs data increased expectations of interest rate cuts by the Federal Reserve in June.
Since January, Bitcoin has soared by almost 70 percent, rebounding from a slump to $15,000 in November 2022 following the collapse of the crypto exchange FTX.
Bitcoin's finite supply, capped at 21 million units by its creator, Satoshi Nakamoto, adds to its allure as a store of value. However, ongoing legal disputes, such as the case in London involving Australian computer scientist Craig Wright's claim to be Nakamoto, underscore the complexities surrounding Bitcoin's origins and intellectual property rights.
As Bitcoin continues its unprecedented rise, fueled by a mixed of institutional interest, market speculation, and macroeconomic factors, its future trajectory remains uncertain.
Nevertheless, its rise to new heights reflects the growing prominence of cryptocurrencies in the global financial landscape, even though the market has gone through some tough times, especially in 2022.
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