Bitcoin
What’s Driving Bitcoin’s Rise? Experts evaluate.
Bitcoin is in tears.
The largest cryptocurrency has soared more than 20% in the last four days, approaching an all-time high. In contrast, the S&P 500 fell slightly during this period.
On Wednesday, the price of bitcoin surpassed $64,000 for the first time since November 2021.
The increase is mainly due to an explosion of investment in bitcoin ETFs, a new investment vehicle approved by the Securities and Exchange Commission last month, analysts told ABC News. That initial burst of gains, they added, triggered a stampede of investors fearful of missing out on returns.
“It’s been a wild ride,” Katie Stockton, founder of market research firm Fairlead Strategies, told ABC News.
A bitcoin ETF (exchange-traded fund) allows investors to purchase an asset that tracks the price movement of bitcoin, while avoiding the inconvenience and risk of purchasing the cryptocurrency itself.
For example, an ETF for gold allows individuals and institutions to invest money in the price movement of the precious metal, rather than having to purchase, transport and store the physical item.
A bitcoin ETF, in turn, gives investors access to the cryptocurrency market without facing the technical impediments and fees associated with browsing a crypto exchange.
Shortly after the SEC approved the new investment option, a number of bitcoin ETFs became available, including offerings from traditional firms like Fidelity and Franklin Templeton.
New crypto alternatives have generated billions of dollars in investment within weeks, Bryan Armour, director of passive strategies research at financial firm Morningstar, told ABC News. The top nine bitcoin ETFs have received a combined total of $10 billion as of last month, Armor said.
“There was a very successful launch for virtually all of these ETFs,” Armor said. “It’s crazy to be on the market for seven weeks.”
When investors put their money into a bitcoin ETF, the funds in turn buy bitcoin, increasing demand for the cryptocurrency and potentially causing a jump in price, Armor added.
Since bitcoin ETFs were approved on January 10, the price of bitcoin has soared 30%.
“There was significant trading volume,” Armor said.
In this Jan. 9, 2024, file photo, Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), is shown at SEC headquarters in Washington, D.C. Bloomberg via Getty Images, FILE
The rally in recent weeks has given rise to an additional wave of investment as traders witnessed the initial rise in prices and looked to jump on board, said Fairlead Strategies’ Stockton.
For about a week in mid-February, the price of bitcoin hovered in a “narrow range” of about $51,000, Stockton said, adding that when it surpassed that threshold on Monday, the new highs fueled optimism. and a wave of investments.
“The acceleration we’ve seen over the last four days has been really explosive,” Stockton said.
Despite the dizzying pace of gains in recent weeks, some analysts have warned about bitcoin’s past volatility and the possibility of an imminent price plateau, or even a crash.
Immediately after the approval of the bitcoin ETF, for example, the price of bitcoin fell 15% before recovering, Armor said. Over the past five years, he added, bitcoin has plummeted more than 40% on four separate occasions.
“Investors can expect the value to rise substantially or fall by half,” Armor said. “Nothing can happen.”
James Butterfill, head of research at digital asset management firm CoinShares, acknowledged concerns about the rapid rise in bitcoin’s price, but also pointed to reasons for optimism.
“When you see the price go up so dramatically, it always worries you a little bit,” Butterfill told ABC News. “Is it sustainable?”
However, Butterfill notes that the price rise coincided with a period of stubbornly high interest rates, suggesting that the jump in demand owes little to excess cash looking for a place to land.
“It’s not crazy speculation,” Butterfill said. “There is a genuine demand for it.”
Bitcoin
‘This is huge’ — Billionaire Mark Cuban issues ‘incredible’ Bitcoin and crypto prediction amid price slump
Bitcoin
Bitcoin
came back with a vengeance this year when former President Donald Trump Cryptocurrency boosts US presidential election in November with ‘revolutionary’ plan.
The price of bitcoin has surged to more than its all-time high in recent months, surpassing $70,000 per bitcoin and triggering a wave of mega-optimistic predictions about the price of bitcointhough it fell again this week, falling below $65,000 after the Federal Reserve kept interest rates steady.
Now, as Elon Musk suddenly breaks his silence on bitcoin and cryptocurrenciesBillionaire investor Mark Cuban called a California plan to digitize 42 million car titles using blockchain an “incredible step forward” and “huge” for cryptocurrencies.
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Mark Cuban, famous Shark Tank investor and billionaire owner of the NBA team Dallas Mavericks, has… [+] called a cryptocurrency update “amazing” amid bitcoin’s price slump.
Getty Images
The California Department of Motor Vehicles (DMV) has digitized 42 million car titles using blockchain, it was reported by Reuters, through technology company Oxhead Alpha on the Avalanche blockchain and designed to detect fraud and facilitate the securities transfer process.
“This is an incredible development for crypto,” Cuban, best known as an investor on TV’s Shark Tank and owner of the Dallas Mavericks NBA team, posted on X, joking that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler could sue the state as part of his hostility toward cryptocurrencies and blockchain technology.
“The reason this is huge for crypto is because people who hold the tokens will have an app with an Avalanche wallet,” Cuban said. “Tens of millions of Californians having and using a crypto wallet in the next five years, or however long it takes, normalizes the use of wallets and crypto.”
John Wu, president of Avalanche developer Ava Labs, told Reuters that California’s DMV is “creating a wallet that you can download on your phone.”
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Bitcoin’s price has rallied this year, triggering a wave of bullish bitcoin price predictions from… [+] people like billionaire Mark Cuban.
Forbes Digital Assets
Last month, Cuban predicted that if the US dollar falls as the global reserve currency, bitcoin could become “a global ‘safe haven’” and a “global currency.” potentially sending the price of bitcoin to a much higher level.
According to Cuban, bitcoin could become what its most ardent supporters “envision” — a means “of protecting our economies… This is already happening in countries facing hyperinflation.”
The price of bitcoin has skyrocketed over the past year, largely due to the world’s largest asset manager, BlackRock, leading a bitcoin attack on Wall Street.
Analysts are starting to pay more attention than usual to Bitcoin-proxy’s underlying enterprise software business MicroStrategy Inc.
How to better invest cash generated from operations is what originally prompted co-founder and CEO Michael Saylor to turn to Bitcoin four years ago. Since then, the Tysons Corner, Va.-based company has adopted a two-pronged strategy of investing in the cryptocurrency instead of traditional assets like short-term Treasuries and ramping up its software operations.
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Bitcoin has retreated from a six-week high as investors shift their focus to speculation the U.S. may sell seized tokens just days after Donald Trump vowed to create a government stockpile of the cryptocurrency if he is elected president again.
The US transferred $2 billion worth of Bitcoin to a new digital wallet address on Monday, blockchain research firm Arkham said in a publish on social media platform X. Market analysis firms have speculated that the tokens are from the Silk Road marketplace, where customers used virtual currencies to buy illegal drugs and hacking tools before it was shut down.
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