Buoyed by investor euphoria, the queen of cryptocurrencies crossed a symbolic threshold this Wednesday, February 28.

Crypto investors have stars in their eyes. This Wednesday, February 28 around 2:27 p.m., bitcoin exceeded the symbolic threshold of $60,000, a first since November 2021. The queen of cryptocurrencies has gained 6% in the past 24 hours, 18% over a week, according to CoinMarketCap. The asset has caught up with its descent into hell in 2022 and is only 13% behind its historic record reached on November 10, 2021 at $69,000.

Several factors explain this surge. On the one hand, the American stock market watchdog (the SEC) authorized 11 spot bitcoin ETFs on January 10, offered in particular by asset managers like Blackrock and Fidelity. Since then, investors have been flocking to these new products. An ETF (or Exchange Traded Funds) is an index fund trading on a stock exchange which follows the evolution of a stock index (or one or more financial or physical assets, such as gold) by replicating the increase as well as the drop in the price of this index (or these assets).

The “halving” is approaching

Furthermore, some investors are anticipating an event that will take place on April 19: the bitcoin halving. This event consists of the halving, every 4 years, of the number of new bitcoins put into circulation on the market (as rewards to miners who validate transactions). Over the last three halvings, a reduction in the available supply of new bitcoins has caused the value of the asset to increase. Some experts anticipate a further increase in assets after April 2024.

In this context of euphoria, financial analysts estimate that bitcoin could exceed, within a few weeks, its absolute record of 69,000 dollars reached on November 10, 2021.

Source: https://www.bfmtv.com/crypto/bitcoin/le-bitcoin-depasse-les-60-000-dollars-un-record-depuis-novembre-2021_AN-202402280568.html

Leave a Reply

Your email address will not be published. Required fields are marked *