According to CoinMarketCap data, the market capitalization, or total worth of bitcoin in circulation, increased beyond $1 trillion on Wednesday for the first time since late 2021.
During the day, the cryptocurrency also crossed the $51,000 threshold, something it hadn't done since December 2021.
According to CoinDesk data, at 6.15 a.m. ET, the price of bitcoin was approximately $51,229, which represents a 3% increase from the price of the previous day.
The increase in price is part of a trend that started in January of last year. Bitcoin has increased by more than 21% only this year.
When the U.S. Securities and Exchange Commission finally approved bitcoin exchange-traded funds, or ETFs, in January of this year, the price of bitcoin surged by more than 150% in 2023.
Following the approval of the ETF, the price of bitcoin fell. Late January saw the start of a new rise as investors turned their attention to the April "halving," which is a supply-restricting event that is scheduled every four years and is documented in the bitcoin code.
The rewards paid to bitcoin miners are halved at that time, lowering the amount of cryptocurrency available for purchase. In the past, halving has come before bitcoin reached new all-time highs in the following months.
In November 2021, Bitcoin reached a record high of well about $69,000.
The strong demand for the ETFs seems to have contributed to the most recent leg of the surge. Last week, net inflows of $1.1 billion were recorded by the recently launched spot bitcoin ETFs.
With exchange-traded funds (ETFs), investors can speculate on fluctuations in the price of bitcoin without actually holding the underlying cryptocurrency. To support the derivative, ETF issuers will need to purchase and sell bitcoin.
There have been price increases for other cryptocurrencies as well. According to CoinDesk data, the price of Ether, the token linked to Ethereum, reached $2,759.87 on Wednesday, marking the highest point since May 2022. Investors are optimistic that the SEC will approve an ether ETF this year.
(Source:www.coindesk.com)
During the day, the cryptocurrency also crossed the $51,000 threshold, something it hadn't done since December 2021.
According to CoinDesk data, at 6.15 a.m. ET, the price of bitcoin was approximately $51,229, which represents a 3% increase from the price of the previous day.
The increase in price is part of a trend that started in January of last year. Bitcoin has increased by more than 21% only this year.
When the U.S. Securities and Exchange Commission finally approved bitcoin exchange-traded funds, or ETFs, in January of this year, the price of bitcoin surged by more than 150% in 2023.
Following the approval of the ETF, the price of bitcoin fell. Late January saw the start of a new rise as investors turned their attention to the April "halving," which is a supply-restricting event that is scheduled every four years and is documented in the bitcoin code.
The rewards paid to bitcoin miners are halved at that time, lowering the amount of cryptocurrency available for purchase. In the past, halving has come before bitcoin reached new all-time highs in the following months.
In November 2021, Bitcoin reached a record high of well about $69,000.
The strong demand for the ETFs seems to have contributed to the most recent leg of the surge. Last week, net inflows of $1.1 billion were recorded by the recently launched spot bitcoin ETFs.
With exchange-traded funds (ETFs), investors can speculate on fluctuations in the price of bitcoin without actually holding the underlying cryptocurrency. To support the derivative, ETF issuers will need to purchase and sell bitcoin.
There have been price increases for other cryptocurrencies as well. According to CoinDesk data, the price of Ether, the token linked to Ethereum, reached $2,759.87 on Wednesday, marking the highest point since May 2022. Investors are optimistic that the SEC will approve an ether ETF this year.
(Source:www.coindesk.com)
