Bitcoin: Surging towards new record highs

Bitcoin surged to $60,000 for the first time since November 2021, inching closer to a new record high. The cryptocurrency reached $60,650 on Wednesday, following significant gains in recent days. This price was not far off the all-time high of $67,707 seen in November 2021, when Bitcoin became popular during the pandemic.

After a sharp decline in late 2022, Bitcoin has experienced a resurgence, largely due to the introduction of new products in the US such as exchange traded funds (ETFs) that allow people to track Bitcoin’s value without owning it. Since the beginning of 2024, Bitcoin has climbed by 42% and increased by 20% since Saturday, reaching heights not seen since November 2021.

The latest surge in Bitcoin’s value comes ahead of the upcoming halving event in April, where the supply of new Bitcoin entering the market will be reduced by 50%.

The halving process is intended to limit the release of Bitcoin, which has a cap of 21 million tokens, with 19 million already in circulation. Currently, approximately 900 new Bitcoins are generated daily, but this will be reduced to 450 after the halving. Previous halving events in 2020 have caused Bitcoin prices to rally.

Analysts attribute the recent surge in Bitcoin’s value to renewed optimism surrounding the asset class, as well as decreased trading activity in recent weeks. A security breach at the US financial market regulator also contributed to a rise in Bitcoin prices earlier this year. Bitcoin’s price fluctuations are not controlled by a company or central bank, making it susceptible to sudden increases and declines.