What's the Secret to Bitcoin's Continued Rise?

Cryptocurrency Bitcoin's price surge and breaking the $50,000 barrier for the first time in two years has raised questions about the reasons as it continues to rise.

Bitcoin is up about 17 percent so far this year, reaching its highest level since December 27, 2021. This means its value has tripled since November 2022.

In the largest cryptocurrency exchange, whose price reached about 53 thousand dollars in the past few days, on Tuesday fluctuated with the fall in global stock indices, and its price reached about 50,300. 52 thousand dollars per coin.

Indicates the network CNN In its report, Tuesday, investors have returned to buying the cryptocurrency in large numbers in recent weeks, pushing the value invested in bitcoin above one trillion dollars for the first time since its peak in November 2021.

A statement to the agency Reuters Earlier this month, expectations for interest rate cuts later this year grew, and from regulatory approval last month for exchange-traded funds designed to track the digital currency's price.

Anthony Trenchev, co-founder of cryptocurrency lending platform Nexo, opined that the digital currency has broken the $50,000 barrier “after introducing instant exchange-traded funds last month, Bitcoin failed to attract a move above an important milestone. This key psychological state, on the contrary, led to 20 percent sales”.

On January 11, the US Securities and Exchange Commission approved 11 funds to trade directly in cryptocurrency, making it available to a large number of new investors.

About ten days after the decision, bitcoin fell to a seven-week low as its exchange-traded funds traded below $40,000 for the first time since its launch, before quickly recovering.

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Matteo Greco, a research analyst at fintech investment firm Phenicia International, said the main driver behind recent bitcoin price gains “may be due to increased inflows into bitcoin ETFs.”

Although bitcoin is still far from its all-time high, which hit $69,000 in November 2021, industry players expect it to continue rising this year and possibly surpass that peak, CNN said.

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