Bitcoin once again demonstrated its importance on Wednesday. Its price exceeded $66,000 for the first time in its history, riding a wave of excitement about how the financial establishment is increasingly accepting the digital currency’s rise. At some point, its price even reached $66,974.77.
The major cryptocurrency roared back after sinking below $30,000 during the summer to top its prior record set in April. Several months ago, Bitcoin’s price jumped to more than $64,000.
Bitcoin’s price increased as more businesses and even the government of El Salvador embraced Bitcoin. The latest converts came into the world of crypto two days ago, when the first exchange-traded fund linked to Bitcoin found huge interest among investors. On Tuesday, shares of the ProShares Bitcoin Strategy ETF changed hands 24.1 million times in a reverberating debut. One day later, the trading volume surpassed 29.4 million.
The exchange-traded fund does not invest directly in Bitcoin. The ETF instead invests in the futures market tied to the world’s largest cryptocurrency. Nevertheless, the industry sees the ETF bringing in a new class of investors. People who have an old-school brokerage account can buy the ETF, for instance, without having to open a trading account for crypto.
Investors are getting more interest in the major cryptocurrency because investors are always looking for assets whose prices move independently of everything else in their portfolios. Some crypto enthusiasts see Bitcoin as akin to a “digital cold”. Even though it doesn’t have a long track record to back that up. Others say digital assets are simply the future of finance, allowing transactions to sidestep middlemen and fees.
Bitcoin and cryptocurrencies, in general, are still very far from winning over everyone, though. Opponents point to how cryptocurrencies are still not widely used as forms of payment. Critics also criticize how much energy is used by the crypto industry. The impact of crypto mining on the environment is a very serious issue. The major threat, in the meantime, is all the regulatory scrutiny shining on it.
In September, China declared Bitcoin transactions illegal, for instance. The chair of the U.S. Securities and Exchange Commission stated that crypto doesn’t have enough protections for investors.
Cryptocurrencies are also famous for their sharp swings in price. In April, Bitcoin surpassed $64,000, but its price dropped by half in roughly three months.
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