Bitcoin Price Surges Past $41,000, Marking a 150% Rise in 2023
Bitcoin has once again taken the financial world storm as it soared past $41,000 on Monday. The rally has been remarkable, with the world’s largest cryptocurrency experiencing a 150% growth so far this year.
Volatility in Bitcoin’s price has been evident, with the cryptocurrency starting the pandemic at just over $5,000 and quickly soaring to almost $68,000 in November 2021. However, a period of aggressive Federal Reserve rate hikes aimed at controlling inflation and the collapse of FTX, one of the biggest companies in crypto, caused a significant drop in prices.
At the start of 2023, a single bitcoin could be acquired for less than $17,000 after losing over 75% of its value. Nevertheless, investors started returning as inflation rates cooled, and the collapse of prominent tech-focused banks led more individuals to turn to crypto.
Prospects for the possible approval of spot bitcoin exchange-traded funds (ETFs) have fueled the latest rally. These ETFs, which are pooled investment securities that can be bought and sold like stocks, are expected to make it easier for anyone to enter the world of cryptocurrencies while lowering some of the associated risks.
Industry advocates believe that the approval of spot bitcoin ETFs could create a much larger pool of crypto investors, but the impact on bitcoin’s value remains uncertain.
Despite the recent excitement around bitcoin, experts maintain that crypto is a risky bet with unpredictable fluctuations in value. Last year’s collapse of crypto exchange giant FTX left a lasting scar on the public’s confidence in the industry. Lower liquidity in cryptocurrency markets has yet to return to pre-collapse levels, which could exacerbate price fluctuations.
As of around 1:30 p.m. Eastern time on Monday, the price of bitcoin stood at $41,709. Other cryptocurrencies, such as Ethereum, Binance Coin, and Dash, have also experienced rises and falls, but not with the same speed or heights as bitcoin. Ethereum, for example, stood at $2,223 on Monday afternoon, marking an 85% increase since the start of 2023.
The recent rally in Bitcoin’s price comes during a time of significant disruptions in the cryptocurrency market, with the U.S. government imposing a $4 billion fine on Binance, the world’s largest crypto exchange. Despite this, the company continues to operate and maintain its market share, indicating the resilience of the crypto market.
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