Bitcoin passing $42000 for first time since 2022
Due to traders’ bets that the United States would soon authorize exchange-traded bitcoin funds and the potential of interest rate decreases, bitcoin surged on Monday, bitcoin passing $42000 for the first price since April 2022. The world’s biggest cryptocurrency hit as high as $42,162 on Monday, its highest since April 2022, seemingly casting off the funk that had settled over crypto markets following the collapse of FTX and other crypto-business failures last year.
Monday’s price of bitcoin was $41,687; it has increased by more than 120% so far this year. Nevertheless, even Bitcoin passing $42000, the cryptocurrency has a long way to go before reaching its most recent record high of about $69,000 in November 2021.
The spike comes after it was revealed last week that the SEC, the US government’s regulatory body, had officially contacted asset managers, including Blackrock. This was done in anticipation of the agency’s expected approval of a bitcoin exchange-traded fund, which would obliquely allow ordinary stock market participants to trade bitcoins.
READ MORE: Shocking numbers, Life expectancy in Canada fell for the third year in a row
Industry analysts are pointing out that investor confidence is being bolstered not just by the regulatory clearance but also by previous scandals, the removal of bad actors from the market as a result of them, and an impending halving event.
Bitcoin passing $42000 is attributed to another fact, one of the main tenets of Bitcoin’s monetary policy is scarcity: there can never be more than 21 million Bitcoins. Over time, the total number of Bitcoins in circulation will be issued at a slower rate. For every block they solved, early Bitcoin miners received 50 Bitcoins; however, this incentive is halved about every four years. For cryptocurrency investors, the period preceding a half event has historically been the most rewarding; the next halves event is anticipated to take place in April 2024.
Investor in bitcoin Microstrategy said last week that it added $593 million to its holdings in November.In the meanwhile, riskier assets and other assets that are sensitive to interest rates, like gold, have also seen significant price increases in recent weeks as investors bet that the US Federal Reserve has completed raising interest rates and would begin reducing them early in 2024.
Bitcoin is passing $42000 mark is also due to fact that bets that an approval is eventually imminent have also increased since reports in October stated that the U.S. Securities and Exchange Commission will not appeal a court decision finding the agency had erred in rejecting an exchange-traded fund application.
READ MORE: Shoplifting in Canada: How Businesses Protect Themselves from Thieves
Investors applauded the resolution of a protracted criminal investigation by the United States into Binance, the largest cryptocurrency exchange globally and a vital component of the global cryptocurrency market. The agreement permits Binance to carry on with business as usual. Changpeng Zhao, the creator of the firm, stepped down following his guilty plea to violating US anti-money laundering rules.
Bitcoin passing $42000 is a good indication, yet it has a long way to establish pre 2022 glory.
