Bitcoin surprises again For the first time since 2021, its value is approaching $49,000. This significant price increase coincides with the historic debut of Bitcoin-based ETFs on Wall Street. What is this phenomenon and what does it mean for the future of digital currencies?
On Thursday morning, Bitcoin, a symbol of financial innovation, reached a value exceeding $48,000, the highest level since the end of 2021. This unexpected price jump is attributed to the debut of Bitcoin-based ETFs, which began their operation on Wall Street.
At a moment of particular interest, Bitcoin reached the $49,000 threshold, only to then fall to around $46,500. According to CoinGecko data, the currency has risen by 3.1% in the last day, and by 7.3% over the week.
The current price increase is inextricably linked with the debut of as many as eleven Bitcoin-based ETFs, which received approval from the U.S. Securities and Exchange Commission (SEC) in a historic decision.
Bitcoin-based ETFs allow traditional financial institutions and investors to gain exposure to BTC without having to own the cryptocurrency itself. Within the first 30 minutes of starting, the turnover of these funds reached $1.2 billion.
Although the approval of Bitcoin-based ETFs had been anticipated for years as a milestone that would testify to the legitimization of Bitcoin in mainstream finance, analysts’ opinions on the impact of this event on the Bitcoin price were divided. Many experts predicted that the approval of the funds would trigger a “sell the news” effect, which could negatively impact the cryptocurrency’s price, at least in the short term.
However, several false starts and unexpected events, such as last week’s disturbing report and Tuesday’s hack of the SEC’s Twitter account, instead of causing a decline, contributed to the rise in Bitcoin’s price. This chaos, paradoxically, paved the way for its rise, driven by the positive reception of the ETF debut.
Bitcoin, once a topic of discussion mainly among technology enthusiasts and pioneers of digital currencies, is now gaining significance in the world of traditional finance. Its increasing value and role in modern financial instruments, such as ETFs, testify to the evolution and maturation of the cryptocurrency market. This is not only an important moment for Bitcoin, but also a sign that digital currencies are becoming an increasingly important element of the global financial system.
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