Bitcoin Surges to Record High Above $69,000
Bitcoin reached a new all-time high on Tuesday, surpassing the $69,000 mark in its price surge.
This achievement surpasses the previous peak set in November 2021, marking a significant milestone for the cryptocurrency amidst a prolonged rally that has seen its value soar by 190% over the past year. Previously, bitcoin's record high stood at $68,990
The cryptocurrency's remarkable resurgence follows a tumultuous period marked by bankruptcies, fraud cases, and market crashes over the last two years. Concurrently, other cryptocurrencies like ethereum have also experienced price surges amid a broader rally in the crypto market. This surge coincides with the approval of several new exchange-traded funds (ETFs) by US regulators earlier in the year, with major financial players such as Fidelity and BlackRock offering some of these ETFs. Crypto advocates view these approvals by the Securities and Exchange Commission as a validation of the industry's legitimacy and long-term viability. Consequently, there has been a surge in trading activity for these ETFs this week as bitcoin's price continues to climb.
Bitcoin is also approaching a significant event known as the "halving," occurring every four years, which reduces the rewards for bitcoin miners and aims to control the overall supply of the cryptocurrency available for trading. Such halvings typically lead to heightened speculation and investor activity in the cryptocurrency market.
Despite its recent successes, the cryptocurrency industry has faced challenges, including heightened scrutiny following the collapse of major crypto exchange FTX in late 2022 due to multibillion-dollar fraud committed by its CEO, Sam Bankman-Fried. Bankman-Fried, once a prominent figure in the US crypto scene, faces a potential maximum sentence of 110 years for his crimes. Additionally, concerns have grown regarding the environmental impact of cryptocurrencies, with the US Department of Energy clashing with the industry as regulators seek to address the technology's substantial energy consumption. Nevertheless, bitcoin has maintained its value amid these challenges, with significant investments from institutional investors contributing to its resilience.