Bitcoin bubblin’
Having endured the "crypto winter", Bitcoin has once again climbed over the $69,000 threshold, trading at a new record high on Tuesday — a milestone mirroring a number of major stock indices in the US, Europe, and Japan, all of which have reached new peaks in 2024.
Part of the recent surge is attributed to the approvals of Bitcoin exchange-traded funds, greenlit by US regulators in January, which have widened access to the world’s largest cryptocurrency, with the 10 US Bitcoin funds currently available ballooning in size to nearly $50 billion since then. Another potential factor is the upcoming “halving” — a predetermined schedule that cuts the reward for mining the cryptocurrency in half approximately every 4 years, limiting the growth of new supply of Bitcoin.
Rising tide lifts all coins
Whether it’s the ETFs, the halving event, or just a renewed enthusiasm for digital currency, Bitcoin continues to drive the wider crypto economy. Indeed, the 15-year-old coin remains by some distance the largest in the crypto universe, with its market capitalization exceeding the value of the 99 next most valuable cryptocurrencies combined, most of which have also gained in value during the latest surge.
The argument for Bitcoin playing the role of “digital gold” as a store of value gains credence with every year that the asset remains relevant. But, as though a reminder of how volatile it can be, Bitcoin suffered a mini crash after reaching its new peak, slipping more than 10% in the space of a few hours.
