Business

Bitcoin strikes record high above $69,000

Approval from US securities regulators enables wider public to invest without holding it directly

AFP March 06, 2024

“Bitcoin mining is a very energy-intensive business, which is why we tend to find places like West Texas to be full of Bitcoin miners,” said Matt Prusak, Chief Commercial Officer at cryptocurrency miner US Bitcoin Corp. PHOTO: REUTERS

LONDON:

Bitcoin hit a record high above $69,000 on Tuesday, buoyed by the world’s biggest cryptocurrency becoming more accessible for trading amid tightening supplies.

Bitcoin reached $69,191.94, beating a record $68,991 struck in November 2021.

The volatile asset later retreated to $67,442. Bitcoin has enjoyed an unbridled rise since the approval of a new type of investment indexed to the cryptocurrency.

Since their approval on January 10 by US securities regulators, exchange-traded funds (ETFs) indexed to bitcoin have theoretically enabled a wider public to invest in the cryptocurrency without having to hold it directly.

The funds themselves, however, do invest in the digital currency.

Read: Bitcoin hits $50k level for first time in more than two years

The expected approval of the new investment product had contributed in recent months to a rise in its price, which had slumped throughout most of 2022 following the bankruptcy of several crypto giants.

The industry sees the entrance of ETFs on the US market as proof of the growing interest from institutional investors in cryptocurrencies, further boosting enthusiasm for bitcoin.

The digital unit is created -- or “mined” -- as a reward when powerful computers solve complex problems to validate transactions made on the blockchain.

Another forthcoming event is also supporting bitcoin prices.“Halving” is a technical phenomenon in which the reward given to bitcoin “miners” -- those who contribute to the creation of the blockchain by validating transactions -- is divided in two. The event takes place every 210,000 blocks, or groups of transactions verified and incorporated on the blockchain, which corresponds to about every four years. The next halving is set for April.

Published in The Express Tribune, March 6^th, 2024.

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