Bitcoin back at US$50,000 as ETF approval, prospect of falling interest rates drive demand for cryptocurrency
BusinessBanking & Finance
Bitcoin back at US$50,000 as ETF approval, prospect of falling interest rates drive demand for cryptocurrency
The original cryptocurrency has tripled in value since the start of last year, climbing back from a 64 per cent plunge in 2022
Latest rally driven by optimism that last month’s US approval of exchange-traded funds to own bitcoin directly is leading to greater mainstream acceptance
Bitcoin
Bitcoin jumped to US$50,000 for the first time in more than two years, staging a remarkable comeback from a series of cryptocurrency industry scandals and bankruptcies that had raised questions about the viability of digital assets.
The original cryptocurrency has tripled in value since the start of last year, climbing back from a 64 per cent plunge in 2022. Bitcoin last traded at US$50,000 in December 2021. The price is still below the all-time high of almost US$69,000 reached in November 2021.
The wild price fluctuations seen since the introduction of bitcoin more than a decade ago have long been one of the main attractions to speculators. While originally promoted as an alternative to the traditional financial system, the latest rally has been driven by optimism that last month’s US approval of exchange-traded funds to own bitcoin directly is leading to greater mainstream acceptance.
“There is a lot of talk about inflow of money into this asset,” said Matt Maley, chief market strategist at Miller Tabak & Co. “I’d also note that the momentum players are getting excited as well.”#Write2Earn
