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Bitcoin Hits All-Time High as ETF Approval Fuels Rally

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Bitcoin Hits All-Time High as ETF Approval Fuels Rally

Bitcoin Hits All-Time High Surpassing $68,000

Bitcoin, the world‘s first and largest digital currency, reached its all-time high this Monday, surpassing the previous record of $68,789 reached on November 10, 2021. The surge comes after a slump of more than two years that called into question the future of the entire cryptocurrency ecosystem.

The rally in bitcoin’s price has been fueled by US regulators’ approval of exchange-traded funds linked to the digital asset. This approval, which required years of lobbying by cryptocurrency companies, was reluctantly granted by the Securities and Exchange Commission after a court ruled that the regulator’s reasons for rejecting bitcoin ETF applications were “arbitrary and capricious.”

The first 11 “spot” bitcoin ETFs launched in January and have already generated more than $4.2 billion in net new flows, according to Bloomberg. These ETFs allow investors to gain exposure to bitcoin through their regular brokerage firm, rather than having to create a digital wallet through a cryptocurrency exchange.

Bitcoin’s rally is significant not only for its price surge but also because it is a benchmark for the cryptocurrency sector. The reputation of the sector has been hit by negative events such as high-profile bankruptcies of exchanges and lenders, volatile price swings, and the prosecution of individuals involved in fraudulent activities.

Despite these challenges, Bitcoin’s value has increased by more than 200% in the last 12 months, according to CoinMarketCap. The rally has also been fueled by anticipation of the upcoming “halving” event, which occurs approximately every four years and reduces the number of new bitcoins entering circulation. As the supply of bitcoin decreases, its value is expected to increase.

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Overall, the surge in bitcoin’s price and the approval of ETFs linked to the digital asset signal a positive outlook for the cryptocurrency ecosystem and may attract more traditional investors to this burgeoning market.

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