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Bitcoin reaches $60,000 milestone

Bitcoin passed the $60,000 mark on Wednesday, approaching its all-time high. Bitcoin traded as high as $61,360, closing in on its all-time high of $68,991, which some analysts believe is now within reach. That’s a 40% increase in 2024 alone.

The rise in Bitcoin’s price has been attributed to the approval of new investment products, specifically exchange-traded funds (ETFs) indexed to Bitcoin. These ETFs have allowed a broader public to invest in Bitcoin without holding the cryptocurrency directly.

The approval in January by the US Securities regulators has contributed to the recent surge in Bitcoin’s price. The launch of ETFs has brought a fresh wave of optimism, increased trading volumes, and drawn attention to crypto-linked firms.

This comes after the drastic price fall at the end of 2022 following the bankruptcy of several crypto giants. The approval has also led to increased institutional endorsement, with major players investing in Bitcoin. Exchange-listed crypto asset-linked investment products have attracted around $5.7 billion since the start of the year.

Analysts suggest that the upcoming “halving” event, expected in April and occurring approximately every four years, could further impact Bitcoin’s price. The halving reduces the reward for miners, potentially slowing the issuance of new bitcoins and increasing scarcity, leading to higher demand and prices.

“As the issuance of new bitcoin slows down, the existing scarcity of the digital asset becomes even more pronounced, typically leading to increased demand and, subsequently, higher prices,” notes Nigel Green, CEO of financial advisory firm deVere. “Cryptocurrencies remain highly speculative, but the enormous interest in spot ETFs and the upcoming halving event… can be expected to continue to fuel the current momentum which could lead bitcoin to surpass the $69,000 mark.”

Could Bitcoin go to 100k? It seems well on track to do so after the halving event in April.

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