Bitcoin on the Rise, Reaching $60,000 Mark

  Pixabay

Bitcoin has been on a steady rise for several weeks, reaching the $60,000 threshold on February 28, 2024. This is the highest value the cryptocurrency has seen since the end of 2021. Over the course of this month, Bitcoin has seen a value increase of over 40 percent.

A Look Back at Bitcoin’s Performance

In late 2021, Bitcoin, which significantly increased in value during the pandemic, was worth approximately $69,000. However, the value of Bitcoin and other cryptocurrencies plummeted in 2022 due to the collapse of the cryptocurrency exchange FTX. By early 2023, Bitcoin, the most traded cryptocurrency, was valued at just $16,600.

Factors Contributing to Bitcoin’s Recent Surge

The recent increase in Bitcoin’s value seems largely due to the introduction of Bitcoin-related funds. In January, financial institutions were given the green light to offer investment products related to cryptocurrencies. This development means that investors no longer need to purchase the coins themselves in order to invest in them. There has been a high demand for these funds.

Mining Fee Reduction and Potential Scarcity

In addition, the reward for mining new Bitcoins is set to be halved in April. This could potentially create a scarcity of Bitcoins available for trade. The last time this occurred was in May 2020, which resulted in a significant spike in the price of Bitcoin.