ISLAMABAD: On Tuesday, Bitcoin surged above $50,000 for the first time in over two years, as investors grew optimistic about broader trading approval in the US, expecting increased demand for the cryptocurrency.
Recent months have seen Bitcoin on a robust trajectory, fueled by anticipation that US lawmakers would greenlight the creation of exchange-traded funds (ETFs) tracking its price, thereby allowing public investment in crypto without direct purchase.
Despite an initial drop following Washington’s nod last month, Bitcoin has rallied approximately 25 percent since January 22, hitting as high as $50,328 according to Bloomberg data, marking its highest level since late 2021.
Observers expressed optimism about the future. Fadi Aboualfa of Copper Technologies noted, “Enthusiast buyers bring in more enthusiast buyers pushing prices further up,” highlighting the cryptocurrency’s momentum with several consecutive weeks of gains, including significant movements upwards of 10 percent.
As of 0330 GMT Tuesday, Bitcoin slightly retraced to $49,950.
While Bitcoin remains below its record value of nearly $69,000 in 2020, this rally signals a recovery from the setbacks and collapses that previously rattled the crypto industry.
Notably, FTX, the world’s second-largest crypto exchange, faced insolvency last year, with its CEO Sam Bankman-Fried under legal scrutiny. Similarly, in November, Changpeng “CZ” Zhao resigned as CEO of Binance amidst money laundering allegations.
Bitcoin’s value has also been influenced by expectations of interest rate cuts by the US Federal Reserve this year as inflation subsides.
Additionally, the cryptocurrency’s value is driven by a forthcoming supply crunch due to an event known as “halving,” where the reward for mining Bitcoin is halved every four years. The next “halving” is scheduled for May.
I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.
