Cryptocurrencies are on the rise again. After the 2021 records, they experienced their own annus horribilis in 2022, but the sector has been recovering in recent months. The best proof of this is Bitcoin, whose value exceeded $50,000 once again yesterday, something it has not achieved in over two years.
One BTC worth (more than) $50,000. The cryptocurrency has gained 16.3% so far this year, reaching its highest value since December 27, 2021 yesterday, Monday. At 18:56 CEST, the cryptocurrency reached the $50,000 level, overcoming that psychological state for the first time. barrier after more than two particularly complicated years filled with scandals and fiascos. It first exceeded this value in February 2021, but then Bitcoin dropped significantly and temporarily rebounded.
Other cryptos do the same thing. As is usually the case in this space, increases were common and other cryptocurrencies also rose significantly throughout the day yesterday. According to CoinMarketCap, Ethereum increased by 5.79% in the last 24 hours and Solana increased by 7.18%.
Stock markets are also on the rise. The first to benefit from this situation were investors, as well as trading markets, whose shares traded on the stock exchange increased significantly. Coinbase was up 4.9%, while mining companies Riot Platforms and Marathon Digital were up 10.8% and 11.9%, respectively. MicroStrategy, which has been accumulating bitcoin for months, increased by 10.2% in the stock market.
Two factors: First, ETF. The increases are mainly due to two factors. The first is the approval of Bitcoin-based ETFs, allowing traditional investors to access these products. Although there was a decline in the value of Bitcoin and other cryptocurrencies after its launch, things have since recovered.
Second, halving. The next significant halving, a process that causes the Bitcoin production rate to split in half, is predicted to occur in April. And because it costs more to extract them, their value increases significantly. This process occurs every four years and its impact is often significant, so investors often prepare for this event and strengthen their positions.
But nothing is written, even less in Bitcoin. As always when talking about cryptocurrencies, uncertainties and volatility rule: bitcoin and other tokens seem to have left the crypto winter behind, but external factors such as government regulations or new scandals may negatively affect the coin’s value once again.
Image | André François McKenzie
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Jason Root is a blockchain enthusiast and author at Div Bracket. He provides comprehensive coverage of the latest developments in the world of blockchain, offering readers a unique perspective on the industry and its potential for revolutionizing various industries.