Bitcoin reaches new high after surpassing $73,600
Bitcoin, the most used cryptocurrency on the market, this Wednesday surpassed the level of 73,600 dollars and reached a new high, according to Bloomberg data collected by Efe. At 7:15 in Lisbon, the cryptocurrency surpassed 73,000 dollars and at 8:44 it reached a new maximum of 73,664.23 dollarsbut in the meantime it dropped and at 12:15 it was being traded at 73,175.01 dollars.
Bitcoin has been reaching new highs for more than a week, reaching $69,191.9 on January 5th and surpassing the all-time high of $68,991 set on November 10, 2021.
Since January 23, when bitcoin fell to a low of $38,509, the cryptocurrency has appreciated by almost 90%.
Analysts cited by Efe attribute the strong rise in bitcoin to the decision of the “Securities and Exchange Commision (SEC), the entity that supervises the North American stock market, to authorize “exchange-traded funds (ETF) linked to the spot price of this cryptocurrency . An ETF is a basket of securities that you buy or sell through a brokerage firm on a stock exchange.
Bitcoin’s rise is also being driven by the halving, in April, of the reward obtained by bitcoin miners, which will reduce the creation of new coins.
Speaking to EFE, Bit2Me’s director of institutional training, Javier Pastor, highlighted the rate of cryptocurrency purchases, which averages around 4,500 bitcoins per day. In this regard, he mentioned that even on Tuesday, BlackRock acquired a record of around 1,000 million dollars in bitcoins.
“We continue to see a sustained purchase that should accelerate with the approval of ETFs in Hong Kong and also of ETMs in the United Kingdom,” said Pastor, who also said that the rise in the price of cryptocurrency is due to the increasingly close proximity of the cuts of rates by central banks, the “halving” and the “shock” of supply.
“This has just started and the question we have to ask ourselves is whether it will be different from other cycles, in which there was an explosion in prices and then a drop of 60% or 70% or more. I think it will probably not happen again in the same way and we will see different behavior, despite an explosive rise”, he concluded.
