Bitcoin soared to a historic high above $69,000 on Tuesday, propelled by increasing accessibility for trading and tightening supplies of the world’s largest cryptocurrency.
The price of Bitcoin peaked at $69,191.94, surpassing the previous record of $68,991 reached in November 2021. However, the volatile asset later retreated to $67,442.
The recent surge in Bitcoin’s value follows the approval of a new investment product tied to the cryptocurrency. Exchange-traded funds (ETFs) indexed to Bitcoin received approval from US securities regulators on January 10, allowing a broader public to invest in Bitcoin indirectly through these funds, although the funds themselves invest directly in the digital currency.
This anticipated approval of ETFs has contributed to the upward trajectory of Bitcoin’s price in recent months, reversing its downward trend in 2022 after the collapse of several major crypto firms. The introduction of ETFs into the US market is seen as evidence of growing institutional interest in cryptocurrencies, further fueling enthusiasm for Bitcoin.
In addition to the ETF approval, another factor supporting Bitcoin prices is the upcoming “halving” event scheduled for April. Halving is a technical process where the reward for Bitcoin miners, who validate transactions on the blockchain, is reduced by half every 210,000 blocks, occurring approximately every four years. This event underscores the scarcity of Bitcoin, as it has a finite supply capped at 21 million units.
Meanwhile, a legal case in London is underway to determine the true identity of Bitcoin’s creator. Australian computer scientist Craig Wright claims to be Satoshi Nakamoto, the pseudonymous creator of Bitcoin who published a white paper introducing the cryptocurrency in 2008. The Crypto Open Patent Alliance (COPA), a nonprofit organization dedicated to keeping cryptocurrency technology patent-free, is suing Wright over his claims, first made in 2016.
