Bitcoin continues its bullish rally. After a weekend in which it broke its own records, the most famous cryptocurrency This Monday it increases by more than 4% and exceeds 72,000 US dollars, in a new historical imprint. Previously, it was close to $72,600, but the path of this cryptocurrency is not free from its usual volatility.
This Monday’s record surpasses last week’s, when the currency surpassed the previous peak of nNovember 2021 of $68,991. Only so far this year, the crypto emblem rises by almost 70%.
“The cryptocurrency market is up 350% from its 2022 low and shows little sign of stopping,” said City Index analyst Fiona Cincotta.
Helping the rally was the announcement by UK financial authorities that they will allow the creation of cryptocurrency-related securities.
Earlier this year, US securities authorities They authorized the first investment fund linked to bitcoin, a decision considered a fundamental stage for the adoption of cryptocurrencies.
The product, which in stock market jargon is called ETF (Exchange Traded Fund), is a fund that groups together securities linked to the bitcoin universe, and whose results are therefore linked to the evolution of this cryptocurrency. This allows investors to try to profit from the cryptocurrency without purchasing it directly.
Sebastián Serrano, CEO and co-founder of Ripio, said: “Bitcoin’s ATH confirms what has been felt since 2023: a strong recovery of the entire sector and the start of a new bullish cycle driven by some specific reasons for its technology (the halving and its relationship with the limited supply of BTC), as well as others that have to do with its regulatory framework (the approval of spot BTC ETFs in the United States in early January 2024) and its fluctuations commercial (the growing accelerated interest of companies, states and individuals)”.
What is Bitcoin halving?
The Bitcoin (BTC) halving is a scheduled event that occurs approximately every 4 years and whose ultimate goal is regulate the supply of the pioneer cryptocurrencygiven that its total issuance is limited to 21 million coins per protocol.
To do this, the amount of new bitcoins that miners receive for mining new blocks is halved. In other words, miners receive 50% less bitcoin for verifying transactions. Therefore, the pace of creation of new BTC units is reduced, making them more scarce and valuable.
CryptoMarket co-founder Rafael Meruane explained that “halvings set a tone for the entire cryptocurrency market, influencing pricing and supply dynamics, thus impacting other crypto assets. Scarcity of new Bitcoin implies lower supply , which can impact its price. “Other cryptocurrencies often follow Bitcoin’s movements, so when the price of Bitcoin rises, it can cause a broader market effect across the entire cryptocurrency space.”
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Source: Clarin
