Bitcoin soared to a new all-time high of nearly $72,000 on Monday, buoyed by increased accessibility and a weakened US dollar.
The surge was fueled by anticipation surrounding an upcoming industry event expected to tighten the supply of Bitcoin. Last week, Bitcoin peaked at $68,991, surpassing its previous record set in November 2021. Additionally, the UK’s Financial Conduct Authority (FCA) announced its approval for the creation of crypto-related securities, further bolstering Bitcoin’s value.
In a significant move, US regulators greenlit exchange-traded funds (ETFs) linked to Bitcoin’s spot price, facilitating easier access for mainstream investors. This development underscores the growing interest in cryptocurrencies among institutional investors.
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The forthcoming “halving” event, wherein the reward given to Bitcoin miners will be halved, has also contributed to the recent surge in value. City Index analyst Fiona Cincotta speculated that Bitcoin could potentially reach $100,000, cautioning against its inherent volatility, which could lead to sudden downturns.
The depreciation of the US dollar has played a role in Bitcoin’s ascent, with expectations of interest rate cuts by the Federal Reserve in June. Since January, Bitcoin has surged by nearly 70%, from approximately $43,000 to its current price.
However, Bitcoin faced a significant setback in November 2022, plummeting to $15,000 following the collapse of the crypto exchange FTX. With a capped supply of 21 million units set by its creator, Satoshi Nakamoto, Bitcoin’s scarcity contributes to its perceived value.
Controversially, Australian computer scientist Craig Wright claims to be Nakamoto, a claim disputed by the Crypto Open Patent Alliance (COPA), which has filed a lawsuit against him. COPA, a non-profit organization, aims to safeguard cryptocurrency technology from patent restrictions.
