Bitcoin Hits New All-Time High Surpassing $69,000, Fueled by Massive Investments from US Financial Giants
The world’s largest cryptocurrency, Bitcoin, experienced a brief surge to a new all-time high, exceeding $69,000, surpassing the previous record set in November 2021. This surge in value has been attributed to major US financial institutions investing billions in acquiring bitcoins.
The cryptocurrency peaked at around $69,200 on Tuesday at 15:00 GMT before retracing, settling at approximately $62,185 by 21:00 GMT. Over the last month, Bitcoin’s value has witnessed a remarkable increase of more than 50%, as reported by the cryptocurrency market data platform CoinMarketCap.
While some experts, like Carol Alexander, a finance professor at Sussex University, anticipate Bitcoin’s value to potentially surpass its new record, she cautioned about the inherent volatility of cryptocurrencies. Alexander emphasized the historical trend of price crashes adversely affecting ordinary investors who join the market during periods of inflated values.
Bitcoin, conceived in 2009 by an entity or entities under the pseudonym Satoshi Nakamoto, originally aimed to create decentralized currency free from the influence of established financial institutions and governments. However, the recent surge in value is paradoxically attributed to substantial investments from mainstream financial firms, facilitated by the approval of spot Bitcoin Exchange-Traded Funds (ETFs) by US regulators in January 2024.
Institutions like Blackrock, Fidelity, and Grayscale have capitalized on these ETFs, acquiring significant amounts of bitcoins and contributing to the substantial upward pressure on Bitcoin’s value. Professor Alexander highlighted the upcoming “halving” event in April as a potential influencer on the cryptocurrency’s value, historically associated with price surges.
While current Bitcoin holders may celebrate the increase in their wealth, the cryptocurrency’s turbulent history, marked by wild fluctuations, serves as a reminder of the unpredictable nature of the market. Despite a recent peak, investors should remain vigilant, considering the past instances of sharp declines, such as the significant drop to 18-month lows in June 2022 and the subsequent slumps in 2023.
El Salvador’s president, Nayib Bukele, known for embracing Bitcoin, has invested over $100 million of public funds in acquiring nearly 3,000 bitcoins in recent years. The current value of his investment has appreciated by around 60%, although specific details remain undisclosed.
