Bitcoin is experiencing a resurgence, surpassing $41,000 for the first time in over a year and a half, with a 150 percent increase this year.
The cryptocurrency’s value had a volatile journey, rising from around $5,000 during the pandemic to nearly $68,000 in November 2021 before falling due to Federal Reserve rate hikes and the collapse of FTX.
However, in 2023, as inflation cooled and tech-focused banks faced challenges, investors returned to Bitcoin.
Main factors driving this surge
The current rally is driven by the potential approval of spot Bitcoin exchange-traded funds (ETFs), which could make it easier to invest in cryptocurrencies.
While the approval of spot Bitcoin ETFs may attract more investors, the impact on Bitcoin’s value remains uncertain.
Despite recent positive developments, cryptocurrency investments still carry significant risk.
The industry has faced disruptions, including the government’s actions against Binance. However, Binance’s continued operation has provided some market stability.
It is important to note that cryptocurrency markets are still recovering from the collapse of FTX, which impacted liquidity and exacerbated price fluctuations. As of the time of writing, Bitcoin’s price stands at $41,650.
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