Bitcoin is experiencing a significant price increase on the stock exchange for the first time since 2021. Now Bitcoin has even broken the 60,000 euro mark.
Source: Photo by André François McKenzie on Unsplash
Bitcoin is currently worth more than ever before. Since its introduction, Bitcoin has become one of the most popular cryptocurrencies and is now breaking the 60,000 euro mark for the first time. The price of Bitcoin only fluctuates by a few hundred euros every day, exceeding its high of almost 59,700 euros on November 10, 2021 for the first time. Due to the renewed interest in cryptocurrencies, Bitcoin currently has a high market capitalization. This amounts to around 1.18 trillion euros.
What is the reason for the price increase?
There are various reasons why the price of cryptocurrency, especially Bitcoin, is rising again. For one, the US Securities and Exchange Commission (SEC) has approved Bitcoin exchange-traded funds (ETFs), allowing more people to invest in Bitcoin. The providers include the major financial companies Blackrock, Grayscale and Ark, which offer such Bitcoin index funds under the International Security Identification Numbers (ISIN) US46438F1012, US3896371099 and US0409191022, respectively. On the other hand, a “halving” is imminent in mid-April, during which the rewards for Bitcoin miners will be halved. This is done to control inflation and can theoretically lead to an increase in the price of Bitcoin as supply becomes scarcer.
In addition, changes in the tech sector are causing an upswing in the stock market. This is mainly due to the increasing interest in artificial intelligence. Cryptocurrencies usually also benefit from this upswing. The second largest cryptocurrency, Ethereum, is currently a quarter away from its peak of 4,400 euros, which means it is currently at 3,100 to 3,300 euros.