Money cryptocurrency
Bitcoin hits all-time high, surpasses $69,000
Status: 05.03.2024 | Reading time: 3 minutes
Bitcoin ETFs were recently approved
Quelle: Getty Images/Chesnot
You can listen to our WELT podcasts here
In order to display embedded content, your revocable consent to the transmission and processing of personal data is necessary, as the providers of the embedded content require this consent as third party providers [In diesem Zusammenhang können auch Nutzungsprofile (u.a. auf Basis von Cookie-IDs) gebildet und angereichert werden, auch außerhalb des EWR]. By setting the switch to “on”, you agree to this (revocable at any time). This also includes your consent to the transfer of certain personal data to third countries, including the USA, in accordance with Art. 49 (1) (a) GDPR. You can find more information about this. You can revoke your consent at any time using the switch and privacy at the bottom of the page.
The price of Bitcoin is rising and rising. Since the beginning of the year, the cryptocurrency has gained around 50 percent against the US dollar. Several factors are currently causing a crypto spring.
The price of the digital currency Bitcoin has reached a new all-time high. On Tuesday afternoon, the oldest and most important cryptocurrency exceeded its previous record of almost $69,000 from November 10, 2021, according to data from the analysis site Coinmarketcap. Bitcoin’s rally began last fall. Since the beginning of the year alone, digital money has increased by around 50 percent against the US dollar.
Bitcoin is subject to strong fluctuations. After reaching its peak on November 10, 2021, the price of Bitcoin crashed to below $17,000 within a year. On Tuesday evening the price initially fell again to below $66,000. For many investors, reaching the all-time high was apparently a signal to take profits and sell Bitcoin.
“For me, Bitcoin is always a crook’s currency”
Dietmar Deffner and Holger Zschäpitz talk about the approval of the week: The US Securities and Exchange Commission (SEC) gives the green light for Bitcoin ETFs. Deffner remains skeptical, while Zschäpitz believes in the cryptocurrency: “Bitcoin is the most successful investment story of the last 10 years.”
Source: WELT TV / Dietmar Deffner, Holger Zschäpitz
According to industry insiders, the situation on the crypto market is not comparable to the situation in autumn 2021. At that time, there was an overheating of the market due to hype among private investors, said Eric Demuth, founder of the Austrian crypto trading platform Bitpanda, to the dpa news agency. There is now a stable legal framework provided by market supervision, so that many institutional investors and banks have entered the crypto market. “They have moved the price up in the last few months because a lot of new money has flowed into the market.” Private investors have so far had little involvement in the current upswing.
Major investors got involved in Bitcoin
Among the major investors, financial institutions such as Grayscale, BlackRock and Fidelity, which have launched Bitcoin funds in the USA, stand out. These Bitcoin ETFs were approved by the US Securities and Exchange Commission in January. They allow investors to invest in Bitcoin without having to directly purchase or hold the digital currency itself.
According to calculations by James Butterfill, head of research at Coinshares, Bitcoin demand far exceeds the amount of new coins being created. The average number of Bitcoin demanded by the ETFs every day alone is around 4,000 Bitcoin per day. “But only 900 Bitcoin are produced a day.” The ETF issuers could therefore not rely on the “miners” to supply them with Bitcoin. “You have to buy from the market. And that drives prices up.”
also read
But Butterfill also blames the financial policy framework for Bitcoin’s rally. When central bank interest rates are high, there are a number of alternatives for investors. “Bitcoin looks less attractive in this case.”
also read
Advertorial Simply Invest
An event that is expected for April 20th 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.