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A physical replica of Bitcoin photographed at a branch of a virtual currency exchange near the Grand Bazaar in Istanbul on October 20, 2021.
new york
CNN
—
Bitcoin soars to all-time highs Monday, Shaking off a more than two-year rut that has cast doubt on the future of the entire cryptocurrency ecosystem.
Bitcoin, the world's first and by far the largest digital currency, traded at $68,791, hitting a world high. The previous record was $68,789, set on November 10, 2021.
Over the past few months, Bitcoin's rally has accelerated as U.S. regulators approved exchange-traded funds pegged to the digital asset, providing an opening for traditional investors to incorporate Bitcoin into their portfolios. Ta.
The approval took years of lobbying by crypto companies and came after the Securities and Exchange Commission ruled that the regulator's reasons for rejecting the Bitcoin ETF application were “arbitrary and capricious.” was reluctantly allowed.
The first 11 “spot” Bitcoin ETFs (which track the asset's real-time market price) were launched in January.
After just one month, the ETF generated more than $4.2 billion in net new flows, according to Bloomberg.
ETFs are investment tools that trade like stocks while tracking a basket of assets. Part of the appeal of Bitcoin ETFs is that investors can access Bitcoin through a regular brokerage rather than setting up a digital wallet through a crypto exchange.
Bitcoin is the bellwether of the broader $2 trillion cryptocurrency industry, but its reputation has been marred by high-profile bankruptcies, volatile price fluctuations, and former Sam Bankman. It has been hit by a series of events that have garnered negative headlines, including Fried's indictment. The crypto celebrity was convicted in November of stealing billions of dollars from customers on his own FTX exchange, which went bankrupt in late 2022.
Bitcoin, which accounts for more than half of all cryptocurrencies in circulation, has appreciated more than 200% in the past 12 months, according to CoinMarketCap.
Bitcoin's rally has also been fueled by crypto enthusiasts who are hoping for further gains this spring following an event known as the “halving.” Approximately every four years, the number of Bitcoins in circulation is cut in half. This is a built-in feature of cryptocurrencies, which are finite by design. As Bitcoin approaches scarcity, its value is expected to rise.
