Bitcoin reached a new record high of nearly $72,000 on Monday due to increased accessibility and a weakened US dollar.
This surge was also attributed to an upcoming industry event that is expected to tighten the supply of Bitcoin.
Last week, Bitcoin reached $68,991, breaking the record it set in November 2021. The Financial Conduct Authority (FCA) in the UK announced it would allow the creation of crypto-related securities, further supporting Bitcoin’s value.
US regulators have already approved exchange-traded funds (ETFs) linked to Bitcoin’s spot price, making it easier for mainstream investors to add Bitcoin to their portfolios. This move is seen as an indication of the growing interest in cryptocurrencies among institutional investors.
The reward given to Bitcoin miners will be divided in two next month during the “halving” event, which has helped increase its value in recent weeks. City Index analyst Fiona Cincotta predicted that Bitcoin could reach $100,000, but warned that its volatile nature could cause it to drop just as quickly as it has risen.
The weaker US dollar also contributed to the surge, as the Federal Reserve is expected to start cutting interest rates in June. At its current price, Bitcoin has increased by almost 70% since January, when it was about $43,000.
However, it fell to $15,000 in November 2022 following the collapse of the crypto exchange FTX. Bitcoin has a finite number of units, with the maximum set at 21 million by its creator, Satoshi Nakamoto.
Australian computer scientist Craig Wright claims to be Nakamoto and is being sued by the Crypto Open Patent Alliance (COPA) over his claims. COPA is a non-profit organization established to keep cryptocurrency technology free from patents.
