This March 5, 2024, the price of Bitcoin (BTC) achieved an important milestone by surpassing its all-time high and exceeding the 69,000 dollars (about 1.2 million pesos) per unit. This new brand represents a historic moment in the blockchain and consolidates it as the queen of cryptocurrencies.
Launched in 2008, Bitcoin was the first cryptocurrency on the market and since its creation has experienced significant volatility, with staggering spikes and crashes. Its highest price was $68,000 in November 2021, but just three months later it plummeted to $37,000. By November 2022, BTC hit bottom by falling to $16,000 per unit.
This record comes after an increase of 6% compared to its previous price. The price of Bitcoin has risen more than 50% over the last month, according to data from CoinMarketCap.
This increase in the price of Bitcoin not only reflects the growing adoption and acceptance of cryptocurrencies globally but also signals an impressive recovery and a possible bullish trend in the market.
This digital currency has demonstrated a remarkable ability to bounce back and reach new highs. This latest increase in its value marks a notable recovery from its low levels in previous months.
Why did the price of Bitcoin rise so much?
The recent rise in the price of Bitcoin is attributed to several factors, including the growing acceptance of cryptocurrencies as a means of payment and investment in digital assets.
The 3 factors of the increase in the price of bitcoin: the halving next April, approval of the exchange-traded fund (ETF) of the digital currency and cycles of the cryptocurrency itself.
1) The halving 2024
This is a pre-scheduled event that occurs every 210,000 mined blocks (approximately every four years), which is expected again in April of this year and which halves the bitcoin rewards that miners receive for verifying transactions.
This drawdown was designed from the inception of bitcoin to protect its value and ensure its scarcity over time, replicating the limited supply of precious metals like gold.
2) The approval of the bitcoin exchange-traded fund (ETF)
This has injected excitement into the market, but also validates bitcoin's intrinsic value as a solid asset on a par with silver and gold.
In this sense, the market capitalization of the bitcoin ETF (over $39 billion) has already surpassed that of the silver ETF (over $12 billion) and is only below the gold ETF (around 97 billion dollars in the United States).
3) Bitcoin price cycles
These have shown a behavior consistent with periods of sustained growth and during which they have reached their historical maximums and then leveled off once they were completed.
Bitcoin's recent appreciation to over $68,000 and its all-time high suggests a promising future for cryptocurrencies. As discussions continue over its volatility and regulation, interest and adoption by institutional and retail investors indicate that Bitcoin and other cryptocurrencies could play an important role in the global financial future.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.