Bitcoin reaches its highest point in a year as the cryptocurrency bounces back from scandals

Despite a number of obstacles facing the sector, interest in digital assets has returned, with Bitcoin reaching its highest level in a year.

According to Bloomberg data, the original digital currency surpassed $31,013, its 2023 top, to achieve its highest point since June 2022. Bitcoin rose to a high of $31,410 during the rally before the gain was reduced. Despite being about 90% higher than it was at the beginning of the year, the token is still more than 50% below its all-time high of almost $69,000. Ether also experienced a surge, and other cryptocurrencies did the same.

For a market that many had written off as being on the approach of extinction following a succession of high-profile and high-impact frauds and firm fallouts that left the industry tarnished in the eyes of investors, it’s a remarkable development — and show of resiliency.

Inflation, monetary mismanagement, banking crises, anxiety over sovereign debt, and questions about the US dollar reserve status are all factors that are contributing to Bitcoiners having a “I told you so” moment, according to Strahinja Savic, head of data and analytics at FRNT Financial. “I would not describe rallying to new all-time highs despite the challenging environment, but rather because of it.”

Recent news of BlackRock Inc.’s shocking application for a US spot Bitcoin exchange-traded fund has revived interest in cryptocurrencies, and some participants in the market are optimistic that a product like this, which is currently unavailable, would be approved by authorities. Fans who have yearned for such an investment product for years would celebrate success, regardless of the odds.

According to Bendik Schei and Vetle Lunde of K33, “BlackRock’s filing is big news for Bitcoin due to its close ties with regulators and a very strong ETF-approval track record.” It’s important to remember that BlackRock would not have spent time and money on this filing if they did not believe that BTC will likely experience long-term strength and big inflows.

“An approval would profoundly impact the structure of the Bitcoin market,” they continued, “as it would lower the barriers for financial advisors to offer exposure to BTC through an accessible investment vehicle with daily creations and redemptions delivered by a trusted issuer.”

Other recent news also boosted cryptocurrency supporters’ confidence in the surge. The launch of EDX Markets, a new cryptocurrency exchange sponsored by companies like Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp., was announced. Along with other developments, JPMorgan Chase & Co. expanded one of the most well-known initiatives to integrate blockchain technology into conventional banking by enabling corporate clients to make payments in euros using its JPM Coin.

According to David Duong, head of research at Coinbase, “the effects of the so-called ‘crypto winter’ seem less persistent today than they did a year ago, as various jurisdictions and institutional players continue to embrace crypto-related initiatives.”

Also Read : Top ten cryptocurrencies to consider buying during a market crash or dip.

Leave a Comment