Image: Reuters
The peak on the Bitstamp trading platform was 65,580 dollars (60,649 euros) on Monday morning. The record high from November 2021 of just under $69,000 is now within sight; it is now only around five percent away.
Increased by 55 percent since the beginning of the year
Bitcoin’s recent surge is drastic: since the beginning of the year, the market value of the largest cryptocurrency has risen by around 55 percent. Over the course of one year, the increase in value is around 190 percent, meaning the price has almost tripled. “The market is currently experiencing the infamous calm before a possible peak storm,” explained expert Timo Emden from Emden Research.
- Also read: Bitcoin on the way to an all-time high
Experts explain the price rally primarily with three developments: On the one hand, since several US ETFs on Bitcoin were approved, it is possible to invest in the digital currency without having to buy it directly. On the other hand, the upcoming halving of the reward for verifying Bitcoin transactions is mentioned as slowing down supply growth. Thirdly, the general record mood on the stock exchanges is seen as an additional boost for the crypto market.
- You might also be interested in: “Milestone”: US regulators allow Bitcoin funds
Strong price fluctuations possible
However, setbacks in the crypto market are always possible as price fluctuations can be violent. However, expert Emden sees differences from the boom at the end of 2021, when Bitcoin collapsed after reaching a record high. “There are obviously fewer short-term speculators in the market who are looking for quick profits.” Rather, the nature of the recent increase suggests that convinced buyers such as institutional names have gradually built up positions and may even have increased them.
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