On Tuesday, as a result of high demand for Bitcoin ETFs, the flagship cryptocurrency once again jumped in price, updating its own historical record to $69.2 thousand (in November 2021, the coin was valued at $68.9 thousand).
As noted by Reuters, since October 2023, Bitcoin has grown by 160% overall, with 44% attributed to February of this year - such confident behavior of the coin sharply contrasts with 2022, which was in a prolonged crypto winter and marked by a series of bankruptcies and scandals.
A significant contribution to the current growth is the approval of Bitcoin ETFs in the U.S. at the beginning of 2024 - exchange-traded funds that track cryptocurrency using futures contracts on the stock exchange (according to LSEG, net inflows into the top 10 Bitcoin ETFs reached $2.17 billion). In addition, Bitcoin and cryptocurrency as a whole received a boost due to the prospect of a rate cut by the U.S. Federal Reserve, which often prompts investors to direct capital into assets with higher returns or greater volatility.
Analysts say that Bitcoin also benefited ahead of the April so-called halving - a process that occurs every four years, during which the token issuance rate and miner rewards are halved. The supply of bitcoins is limited to 21 million, of which 19 million have already been mined.
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