Investors who are not in the mood for thrills should give Bitcoin a wide berth. After all, the price of the world’s best-known cryptocurrency is characterized by constant ups and downs. We are currently experiencing an unprecedented high. Its value has risen to just over 50,000 US dollars for the first time. This is probably due not least to the approval of ETFs based on Bitcoin.
Bitcoin with a new personal record
Investing in Bitcoin requires strong nerves. The world’s best-known cryptocurrency repeatedly suffers from sharp falls in value. In the summer of 2022, for example, the value of a coveted coin was still below USD 20,000. The digital currency is now miles away from this. And in a positive sense. Owners of one or even several Bitcoins can currently look forward to an almost historic price high. Economic policy developments in the USA are ensuring that the value is above USD 50,000 for the first time since the end of 2021. In addition to the approval of ETFs based on bitcoins, this is certainly also due to the expected fall in interest rates in the United States of America.
The price change is particularly impressive when you look at its speed. In the still relatively young year 2024, the value of the cryptocurrency has already risen by over 16 percent. This is according to a report by CNBC. Whether this is just the beginning of a continuing rise in value, however, cannot be said with certainty. As the US news channel further reports, the value of Bitcoin fell below the magic mark of 50,000 US dollars again over the course of Monday after peaking at 50,168 US dollars. Bitcoin owners are not the only lucky ones. After all, other cryptocurrencies also recorded a real upswing.
US Securities and Exchange Commission provides tailwind
You don’t have to be a stock market expert to guess what’s behind the high in the Bitcoin price. In January 2024, the US Securities and Exchange Commission approved so-called Bitcoin ETFs for the first time. As a result, it is now possible to invest in funds based on the world-famous cryptocurrency. Stock market experts are now certain that the new ETFs will tie up a lot of investment capital. According to a report by Reuters, analysts predict that up to USD 100 billion could be accumulated in Bitcoin ETFs in 2024 alone.
This is not surprising. After all, the listing of ETFs on the US stock exchange has made bitcoins much more socially acceptable. The decision also makes it much easier for investors to invest in Bitcoin. Potential investors who are not keen on crypto exchanges could now be far more interested. Whether this is already the end of the road remains to be seen. After all, another milestone in the history of Bitcoin is due in April 2024. This is when the “total supply” of Bitcoin is to be halved without further ado. We remain curious and will keep you up to date.