Bitcoin value has soared 200% year-over-year after it sank as low as $13,000 in November 2022
Bitcoin, the world’s largest cryptocurrency by market value, soared to a record high on Tuesday, briefly surpassing the $69,000 mark before settling around $62,000, per CoinMarketCap.
After the digital currency sank to as low as $13,000 in November 2022 amid the FTX collapse, the asset’s value has soared 200% year-over-year.
One major catalyst for the rise was the Securities and Exchange Commission’s (SEC) January approval to launch spot Bitcoin exchange-traded funds (ETFs).
The decision opened floodgates for traditional investors and heavyweights like Fidelity and BlackRock into the market, buying and selling assets en masse. It has attracted over $4.2 billion in new investments, according to Bloomberg.
Another factor is quadrennial halving, the pre-programmed protocol built into bitcoin that occurs once every four years and is slated for April.
Halving reduces the number of new bitcoins entering the market, skyrocketing its value as demand increases. The halving event in May 2020 resulted in investors gaining 700%.
Cryptos are having a moment
Following the success of bitcoin EFTs, several Wall Street firms have also applied to launch ether EFTs. Ether belongs to the Ethereum blockchain and is the second largest crypto after bitcoin.
Even memecoins like doge and shiba inu are rallying.