After days of anticipation, Bitcoin hit its all-time high on Tuesday by surpassing $68,800, a record last reached in November 2021. Although the price later dipped again, it’s still up nearly 200% from one year ago.
In January, the Securities and Exchange Commission approved bitcoin exchange traded funds, which has since led to a price surge of around 60%. Buying bitcoin EFTs is a way to invest in assets without having to buy those assets directly.
Bitcoin “halving,” which occurs every four years and is anticipated in April, is also behind the higher stock prices. Halving lowers how frequently new bitcoins are mined and created, which decreases the overall supply.
“Past history may not be a reliable guide to predict how the upcoming halving of bitcoin will influence its value,” said Rajeev Bamra, SVP of digital finance at Moody’s Investors Service. “Various external factors, market sentiment shifts, and regulatory developments can influence the trajectory of Bitcoin’s price.”
