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Bitcoin exceeds $72k mark, soaring to unprecedented high
Tue, 12th Mar 2024

Bitcoin has achieved a landmark high against USD, escalating its trading value beyond the $72,000 per BTC mark for the very first time. This milestone augments the cryptocurrency's trajectory since its inception, making it an increasingly significant player on the world's financial stage.

This rise in Bitcoin's fortunes has not happened in isolation. The uptick in Bitcoin's price has coincided with an increased acceptance of the cryptocurrency by conventional financial institutions. As a testament to this shift, in January 2024, well-respected financial giants such as BlackRock, Invesco, and Fidelity were among the 11 spot Bitcoin exchange-traded funds (ETFs) that were approved.

Ben Rose, the General Manager of Binance in Australia and New Zealand, spoke buoyantly of the upsurge in interest in digital currencies. "We've always had an unwavering belief in the potential of cryptocurrency, and it's exciting to see more and more people becoming aware of that potential," Rose stated, candidly describing the path digital currencies have traversed.

The increased accessibility of the cryptocurrency to new investors is reflected in the growing daily volumes witnessed by Bitcoin ETFs. Rise noted, "With the introduction of spot Bitcoin ETFs, investing in Bitcoin is now more accessible than ever for first-time investors and we've seen an influx of new investors dipping their toes into crypto for the first time."

In light of Bitcoin's legitimisation through the ETF listings, crypto is gaining traction as an emerging asset class. Simultaneously, it is continuing to grow in popularity among prospective investors.

One reason for this escalating enthusiasm is the upcoming Bitcoin halving, slated to take place in April this year. This much-awaited occurrence, which happens every 210,000 blocks, roughly over a four-year period, effectively halves the miners' rewards, ensuring a BTC supply cap of 21 million. Analysts watch the event closely, charting the effects it might have on the markets.

Previous halving events have led to an increased value of Bitcoin, though the effect on the price is always subject to fervid debate among market participants. This year's halving, however, will be the first one in Bitcoin's history where significant funds from institutional and traditional markets are also involved, thanks to Bitcoin ETFs.

Rose further observes, "Reaching an all-time USD high, even before the halving, speaks volumes to the growing acceptance and optimism towards crypto. The halving event serves as a reminder of Bitcoin's fundamental strengths, which distinguish it from traditional fiat currencies."

Bitcoin's algorithmically set supply and its precoded halving event create a desirable asset free from inflationary dilution. "Right now, we are seeing that investors are seeking certainty in volatile times, and with global debt increasing at record levels, Bitcoin and its set-in-stone halving event provides confidence that its scarcity will continue," commented Rose.

With greater democratisation of access to cryptocurrencies and the promise of record-breaking highs, investors are becoming increasingly attracted to digital currencies' potential. "It's no surprise to see Bitcoin surging in a year when entry barriers to investing have never been lower. Investing and trading in crypto is no longer restricted to tech-savvy individuals," concludes Rose.