Bitcoin’s price rally continues. The cryptocurrency was listed on the platform early Monday afternoon Coinbase at $65,477. This means that the cryptocurrency is no longer $4,000 away from its high of $69,000. It was reached on November 10, 2021. A year later the price had plummeted to under $17,000. This shows how much the Bitcoin value fluctuates. The price also fluctuated significantly on Monday.
Just a few weeks ago, digital money broke the $50,000 mark.
Two factors are driving the Bitcoin price
From an expert perspective, there are two reasons for Bitcoin’s current stormy upward trend:
- The approval of dedicated Bitcoin funds in the US in January sparked new investor interest. These Bitcoin ETFs have been approved by the US Securities and Exchange Commission (SEC). These Bitcoin spot ETFs are novel because they allow investors to invest in Bitcoin without having to directly purchase or hold the digital currency itself. This creates significant advantages when dealing with cryptocurrency.
- The next so-called halving is coming up in April. The reward that Bitcoin miners receive for verifying crypto transactions is halved. Ultimately, the process leads to a slower growing supply of Bitcoin, which previously led to rising prices.
A Bitcoin price of $100,000 could also be reached
Experts also think prices of over $100,000 are possible, including Bitpanda CEO Eric Demuth. However, there are also warning voices, such as the German consumer advice center. Consumer advocates recently explained that Bitcoins are not recommended as an investment due to the risks – from strong price fluctuations to total loss.
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