The price of Bitcoin is approaching approximately $52,000, after a widespread rise in cryptocurrencies, which also witnessed the return of Ethereum (the second largest cryptocurrency in the world) to the level it reached before the crisis of the collapse of the stable currency Teradollar approximately two years ago.
Bitcoin's 22% rise since the beginning of this year until now has contributed to the market value of digital assets crossing the threshold of two trillion dollars for the first time since April 2022, according to data from CoinGecko. While the value of Bitcoin and Ethereum rose by more than 1% at some point during Thursday's trading in Singapore, with Ethereum reaching $2,785 at 9:37 am.
Favorable conditions in the sector have provided support for Bitcoin, including the launch of exchange-traded funds on US exchanges for the cryptocurrency.
The group of products issued by companies such as BlackRock and Fidelity Investments has attracted net investments worth $3.9 billion since the start of trading in the funds on January 11.
This rise also coincides with the approaching Bitcoin halving event, scheduled to be held next April, which will limit the supply of the largest cryptocurrency, and many view it as supportive of its prices based on what happened in previous halving events.
Bitcoin jumps in value of cryptocurrencies
The recent price rise mostly stems from strong net investment inflows into U.S. Bitcoin spot ETFs, said Zach Bandel, managing director of research at cryptocurrency fund firm Grayscale Investments.
Ethereum was slower than Bitcoin in returning to its level before the Teradollar collapse crisis in early May 2022, and this level is considered very significant for investors, given the collapse caused by the crisis, and Du Quan, the creator of the Teradollar currency, is still detained in Montenegro and awaiting extradition. To his native country in South Korea or the United States, where he faces fraud charges.
The price of Bitcoin has tripled since the beginning of last year, as it regained strength after the collapse of the digital asset in 2022. Bets in the options market indicate that traders are targeting prices exceeding Bitcoin’s record record of approximately $69,000, which it reached in November 2021.
For her part, Noelle Acheson, author of the Crypto Is Macro Now newsletter, wrote that the supportive outlook for Bitcoin is helping the entire cryptocurrency market, as significant correlations appear between the rise of Bitcoin and other (digital) assets.
