Bitcoin Price : Although the cryptocurrency sector is in the shadow of recent outbursts and controversies, the world’s most important token — bitcoin — is making a comeback
Bitcoin surged to around $42,000 on Monday, the first time the virtual currency broke above $40,000 in 18 months, according to price tracker CoinDesk Indices.
The rebound contrasts with the uncertainty that plagued the industry following the spectacular collapse of cryptocurrency exchange FTX last year, which saw creator Sam Bankman-Fried convicted of seven counts of fraud in November . . . . Also last month, Binance — the world’s largest cryptocurrency trading platform — agreed to pay $4.3 billion after admitting it violated U.S. sanctions. laws to prevent money laundering and sanctions violations following, with CEO Changpeng Zhao pleading guilty to an official crime.
Despite this controversy, the price of Bitcoin rose 150% this year, but has not recovered from its peak of around $69,000 by the end of 2021.
What is bitcoin again?
The first cryptocurrency called Bitcoin was created in 2009. According to Satoshi Nakamoto, the anonymous creator of Bitcoin, cryptocurrencies are digital tokens that work based on peer-to-peer technology to enable instant payments by any other Bank does not participate or payment terms.
Unlike fiat currencies, cryptocurrencies can be invested as investments (like stocks) and used to buy goods and services online but according to financial firm Charles Schwab, investing in any cryptocurrency can be dangerous because of its often uncertain value.
There are over 11,000 cryptocurrencies, but according to data from cryptocurrency price tracker CoinGecko, Bitcoin has the largest market capitalization and is the most valuable (in dollars) of them all.
Bitcoin’s recent increase is due to several factors. Signs that major financial institutions are about to get regulatory approval for bitcoin exchange-traded funds, or spot bitcoin ETFs, which are pooled investment securities that can be bought and sold like stocks, are perhaps the most important for Moody’s According to senior product director Yiannis Giokas, it could be easier for investors to invest in the cryptocurrency if regulators approve several bitcoin ETFs as soon as January, as reported by CBS MoneyWatch.
More individual institutional investors—even the most cautious—will feel more comfortable investing in the bitcoin spot ETF market as more managers get involved, he said.
Growing confidence on Wall Street that the Federal Reserve has raised its benchmark interest rate now that inflation is falling and that the central bank might even start easing monetary policy by mid-2024 to keep the economy stable also helps bitcoin prices . . . .
Greg Magadini, head of derivatives at crypto data firm Amberdata, told CBS Money Watch that the low bitcoin price is optimistic.
According to Geocas, 2024 could prove to be a historic year for bitcoin and a good indicator of the overall health of the cryptocurrency economy.
When bitcoin initially surpassed $40,000 by 2021, a bull run followed each time, so this means markets will soon expect another run, he added.
Bitcoin Price Action
After hitting a 20-month high of $42,140 on Sunday night, bitcoin was trading around $41,750 on Monday afternoon. So far this year, the world’s largest cryptocurrency is up 153%.
As of Monday evening, Ether was trading around $2,250, the highest level since May 2022. In 2023, ETH rose 88%.
Coin base stock rose 5.5% on Monday, extending the previous day’s 7.3% gain. This year, COIN stock gained more than 299%.
Bitcoin investor major Micro Strategy saw a 6.7% increase on Monday. By 2023, MSTR stock grew by about 298%.
Rival Riot Platforms (RIOT) rose 10.2% on Monday, while cryptocurrency miner Marathon Digital rose 8.5%.
Montage HUT stock fell 7.4%. On November 30, the U.S. Bitcoin Corp. and bitcoin miners Hut 8 Mining shares surged nearly 430% in trading hours after an all-stock merger in Dec. 4. The newly formed company, sometimes called New Hut or Hut 8 Corp., was formed. , in Toronto Nasdaq stock exchanges will begin trading under the symbol HUT
For each of their Hut 8 shares, Hut 8 Mining owners received 0.2 shares of New Hut stock, while US BTC shareholders received 0.6716 shares for each share of their assets.