NEW YORK — NEW YORK (AP) — Bitcoin has hit an all-time high less than two years after the collapse of the crypto exchange FTX severely damaged faith in digital currencies and sent prices plunging.
The world’s largest cryptocurrency briefly surpassed $68,800 Tuesday, according to CoinMarketCap. That’s just above bitcoin’s previous record set back in November 2021.
The price for the volatile asset is up almost 200% from one year ago, fueled by the anticipation and eventual regulatory approval of spot bitcoin exchange traded funds earlier this year, which provided access to a much broader class of investors.
The price for bitcoin has surged about 60% since the approval of bitcoin ETFs in January, an easy way to invest in assets or a group of assets, like gold, junk bonds or bitcoins, without having to directly buy the assets themselves.
Also driving prices is what is known as bitcoin “halving” which is anticipated in April. Halvings trim the rate at which new coins are mined and created, lowering the supply.
Bitcoin has a history of drastic swings in price — which can come suddenly and happen over the weekend or overnight in trading that continues at all hours, every day.
Bitcoin rocketed from just over $5,000 at the start of the pandemic to its November 2021 peak of nearly $69,000, in a period marked by a surge in demand for technology products. Prices crashed during an aggressive series of Federal Reserve rate hikes intended to cool inflation, slow money flows and make risky investments potentially riskier. Then came the 2022 collapse of FTX, which left a significant scar on confidence in crypto.
At the start of last year, a single bitcoin could be had for less than $17,000. Investors, however, began returning in large numbers as inflation started to cool. And 2023’s collapse of prominent tech-focused banks actually led more investors to turn to crypto as they bailed out of positions in Silicon Valley start-ups and other risky bets.
Despite the recent excitement around bitcoin, experts still maintain that crypto is a risky bet with wildly unpredictable fluctuations in value. In short, investors can lose money as quickly as they make it.
Bitcoin, the world’s most popular cryptocurrency, has reached a record high following a recent scandal involving FTX, a major player in the cryptocurrency market. This surge in Bitcoin’s value comes as investors seek safe haven assets amidst the uncertainty and volatility in the market.
The FTX scandal, which involved allegations of market manipulation and insider trading, has sent shockwaves through the cryptocurrency community. As a result, many investors have turned to Bitcoin as a more stable and reliable investment option.
Bitcoin’s value has soared to new heights, surpassing its previous all-time high and reaching levels not seen since its peak in 2017. This surge in value has been driven by a combination of factors, including increased demand from institutional investors, growing acceptance of Bitcoin as a legitimate asset class, and a general sense of uncertainty in traditional financial markets.
In addition to its role as a safe haven asset, Bitcoin is also benefiting from its status as a decentralized and borderless form of currency. With central banks around the world printing money at unprecedented rates in response to the economic fallout from the COVID-19 pandemic, many investors see Bitcoin as a hedge against inflation and currency devaluation.
Despite its recent success, Bitcoin still faces challenges and uncertainties in the cryptocurrency market. Regulatory scrutiny, technological limitations, and competition from other cryptocurrencies all pose potential risks to Bitcoin’s long-term viability.
However, for now, Bitcoin’s record high is a testament to its resilience and growing acceptance as a mainstream investment option. As more investors flock to Bitcoin in search of safety and stability, its value is likely to continue to rise in the coming months and years.
