Bitcoin prices exceeded their previous record of $68,991 in November 2021, reaching $73,066.3 before retracting to $70,197.9, according to AFP news.
Bitcoin’s surge continued with the launch of sports ETFs based on cryptocurrencies, approved by the US Securities Exchange. The approval of these ETFs in the US facilitated trading on traditional exchanges, increasing interest in Bitcoin.
The upcoming “halving” event played a significant role in the rise of Bitcoin prices. The “halving” event, which halves the Bitcoin reward obtained through mining activities on the blockchain, is expected to take place in April and could continue to support prices.
Ethereum, the world’s second-largest cryptocurrency, has gained 6.6% in value over the past 24 hours, reaching $3,793. Ethereum is maintaining its record high of $4,000 in 2021.
Cryptocurrency investor and software company MicroStrategy executed a purchase worth $155 million for its Bitcoin holdings, valued at approximately $10 billion. This accelerated the increase in Bitcoin’s value.
The Impact of Bitcoin ETFs
The commencement of trading for the first Bitcoin ETFs in January accelerated the rise in Bitcoin’s value. The US Securities and Exchange Commission (SEC) approved investment firms to invest in Bitcoin on behalf of their clients. This decision enabled the use of ETFs that trade on the spot Bitcoin exchange in all investment vehicles, from retirement funds to investment portfolios.
ETFs offer investors the opportunity to invest in a variety of assets through a single investment. Bitcoin ETFs facilitate the direct purchase of Bitcoin, increasing access to the cryptocurrency. Recent weeks have seen a net inflow of $5.6 billion into Bitcoin ETFs.
Decreasing Supply Supports Value Increase
A reduction in Bitcoin’s supply generally enhances the perception of value increase. The next “halving” event expected in April will halve the production reward of Bitcoin, limiting its supply. This encourages Bitcoin purchases.
Justin d’Anethan, President of Partnerships in Asia at Keyrock, stated, “There is a certain supply, but the demand created by US spot ETFs continues,” highlighting that Bitcoin’s limited supply increases demand.
Bitcoin is heading towards its largest monthly gain since January 2023, with a 32% increase in February. This rise is generating interest in the cryptocurrency beyond the investment community.
Social media platform Reddit announced its choice to invest in digital assets such as Bitcoin, Ether, and Matic by listing its shares on the New York Stock Exchange.
Resources:
Bitcoin rekor kırdı | Hürriyet
Bitcoin neden yükseliyor? – BBC News Türkçe
Bitcoin 72 bin doları geçerek tüm zamanların zirvesini gördü – Dünya Gazetesi (dunya.com)
Bitcoin Historical Data – Investing.com
Bitcoin scorches past $57,000 as big buyers flock in | Reuters
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