Bitcoin surpasses $70,000, a record in one week

From that moment on, the flow of investment from large funds to the Bitcoin market has skyrocketed.

Bitcoin, the most widely used cryptocurrency, surpassed 70,000 dollars this Friday and marked a new all-time high, the second in a week, driven by the entry into the market of large investment funds after the United States authorized the exchange-traded funds (ETFs) linked to this cryptocurrency.

The virtual currency touched 70,085 dollars at 4.30 p.m. (15.30 GMT), according to Bloomberg data, surpassing the previous record of 69,191.9 dollars, reached last Tuesday.

The top reached that day meant beating a record in force since November 10, 2021, when the bitcoin had reached $68,991.85.

As was the case on Tuesday, the Bitcoin high coincides with a new high for gold.

The ounce of gold remained at a record high today at the opening of the European stock markets when it was trading at 2,164.6 dollars.

Thus, the total capitalization of the bitcoin market now stands at 1.37 trillion dollars (1.25 trillion euros), according to data from CoinMarketCap.

Since last January 23, when bitcoin fell to its annual low ($38,509), the cryptocurrency has appreciated by more than 80%.

Analysts attribute Bitcoin’s strong rise to the decision of the SEC, the US stock exchange supervisor, to authorize ETFs linked to the spot price of this cryptocurrency.

Other factors mentioned by analysts are the possibility of a drop in interest rates and the proximity of a new ‘halving’ (the reduction by half of the reward obtained by bitcoin ‘miners’), scheduled for April.

Unlike what happens with currencies issued by central banks, bitcoins are created in a decentralized manner through a process known as ‘mining’.

Historically, after a ‘halving’, bitcoin has appreciated.

On January 10, the SEC approved a legislative amendment allowing the creation of ETFs linked to the spot price of bitcoin.

Among the fund managers that had requested authorization to create this type of ETF were industry giants such as BlackRock, Fidelity, and Grayscale.

One day later, on January 11, bitcoin soared to over $49,000. However, on January 12, the cryptocurrency dropped nearly 6%.

The bitcoin then began a downward path that led it to lose the $39,000 level on January 23, a trend reversed in recent weeks.

Source: Forbes Central America