Bitcoin, the most valuable cryptocurrency, broke the $50,000 barrier this Monday, a level it had not exceeded since December 2021, more than two years ago. In this period it has experienced a real resurgence after falling sharply in 2022, amid scandals and doubts, and receiving support from the authorities last month with the approval of ETFs, exchange-traded funds, in the US.
That approval is serving as momentum. ETFs offer investment in the asset with greater security and have opened the doors of the crypto market to institutional investors, despite the fact that at first the value fell due to the maxim of "buying with the rumor and selling with the news."
In these more than two years, bitcoin has gone through all the stages, from sharp falls to skyrocketing. It has fallen below $17,000, reconsidering the existence of a crypto winter. There have also been scandals such as the bankruptcy of the giant FTX and the sending of Sam Bankman-Fried to prison, the implosion of the TerraUSD stablecoin or the billion-dollar fine on Binance for money laundering. With strong volatility, it has survived everything. Today it is somewhat closer to its record of almost $69,000 from November 2021.
Added to this is the arrival around April of a new halving, a technical process that will reduce payments to miners. It happens every about 4 years and usually shoots up the value. It also affects the "typically positive" sentiment towards bitcoin during the Lunar New Year holidays currently underway in Asia, according to a note from Fundstrat Global Advisors cited by Bloomberg.
"Bitcoin has already reached $50,000, but this time it is different. We are not facing the typical crypto bull run, nor is it due to a frenzy in the market, nor the uproar on social networks, but we are witnessing the result of a constant increase in demand for digital assets", analyzes Mireya Fernández, head of Bitpanda Spain. "The reason behind this rise is a combination of retail and institutional investment, greater regulation and trust and better access to this asset. There are many factors in favor: the upcoming halving, the recovery of the economy and the constant search for the investors of the best opportunities," he assures.
According to eToro data, eleven days have accumulated with net purchases in the ETFs. "It has been a difficult two years, but the approval of exchange-traded funds has been an important achievement that has helped push the price up. Now many expect it to go from strength to strength," says Craig Erlam, an analyst at Oanda.