The queen of cryptocurrencies, which exceeded $60,000 this Wednesday, is no longer far from its absolute record of $69,000.

Bitcoiners are celebrating. This Wednesday, February 28, bitcoin exceeded the symbolic threshold of $60,000, a record since November 2021. The figures for its surge are impressive: the queen of cryptocurrencies gained 8% in one day, 21% in one week and 49% in one month, according to CoinGecko data. At 9:30 a.m. French time this Thursday, bitcoin exceeded $63,000. The asset has caught up with its descent into hell in 2022 and is only 8% behind its historic record reached on November 10, 2021 at $69,000.

The queen of cryptocurrencies displays a capitalization of 1,230 billion dollars, bringing the entire crypto market above the symbolic threshold of 2,000 billion dollars in capitalization.

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).

Bug on Coinbase

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.

Despite the incredible rise of bitcoin, the cryptocurrency market remains volatile. This Wednesday, a technical problem on the Coinbase crypto exchange caused bitcoin to fall by 8% in one hour, creating cold sweats on the market. In this context, investors must remain very vigilant.


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