• Fri. Dec 8th, 2023

Bitcoin: Bitcoin hits one-year high as crypto bounces back from scandals

Bitcoin: Bitcoin hits one-year high as crypto bounces back from scandals
Bitcoin It hit a one-year high amid renewed enthusiasm for digital assets despite several challenges for the industry.
The virtual digital currency rose above a 2023 peak of $31,013, the highest level since June 2022, Bloomberg data showed. The surge took Bitcoin as high as $31,410 before paring the gains. The token is up nearly 90% since the start of the year, though remains 50% below its all-time high of $69,000. Other cryptocurrencies followed suit and Ether also rallied.
It’s a remarkable development for a market that many have written off as on the brink of extinction due to a series of high-profile, high-impact scandals and company failures that have stunned the industry among investors — and show resilience.
“From a serious bitcoiner’s point of view, the token’s most fundamental investment thesis plays out: inflation, money abuse, banking crises, sovereign-debt anxiety, and US-dollar-reserve-status questions all give bitcoiners an ‘I told you so. So moment,'” said Strahincha, head of data and analytics at FRNT Financial. Savic said. “I wouldn’t describe the rally to new all-time highs despite the challenging environment, but because of it.”
Most recently it was in the news BlackRock IncA shock filing for a U.S. spot bitcoin exchange-traded fund has fueled excitement for the crypto, with some in the market hoping that such a product — which currently does not exist — will receive approval from regulators. A nod to fans who have yearned for such an investment product — whatever its potential — would mark a victory.
“BlackRock’s filing is big news for bitcoin because of its close relationship with regulators and strong ETF-approval track record,” wrote K33’s Bendik Schei and Vettle Lunde. “It is also important to note that BlackRock would not have invested the time and resources in this filing unless it saw the potential for long-term strength from BTC, and thus strong inflows, to be significantly higher.”
They added: “An approval would have a profound impact on the market structure of Bitcoin, as it would lower the barriers for financial advisors to offer exposure to BTC through an accessible investment vehicle with daily creations and redemptions provided by a trusted issuer.”
Other recent news also bolstered crypto believers’ faith in the rally. A new crypto exchange — called EDX Markets — backed by firms including Citadel Securities, Fidelity Digital Assets and Charles Schwab Corp. said it had gone live. And, among other news, JPMorgan Chase & Co expanded one of its highest-profile projects Blockchain The technology to traditional banking is introducing euro-denominated payments with its JPM Coin for corporate clients.
“The effects of the so-called ‘crypto winter’ appear to be less than a year ago, as various jurisdictions and institutional players continue to embrace crypto-related initiatives,” David Duyung, head of research at Coinbase, said in a recent note. .
On Twitter, home to many crypto discourses, many users cited FOMO—or fear of missing out—as part of the recent price surge. Rally, would like to attend.
But the fact that the industry faces tougher regulatory oversight hasn’t disappeared amid all the renewed farce about price gouging.
The SEC has set its sights on the crypto space following several incidents over the past year involving frauds and failures by once-mighty companies, including FTX and several lenders. This led to a mass exodus of retail investors who collectively lost billions of dollars in the wake of the revelations and implosions.
As a result, trading volume dried up. In May, combined spot and derivatives trading volumes on centralized exchanges fell more than 15% to $2.4 trillion, according to CCData. Spot trading volumes alone fell nearly 22% to $495 billion, the lowest monthly reading since March 2019, the researcher said in a report.
“Given the early liquidity and the relatively small amount of BTC (there are no enthusiastic sellers at these levels), even a small increase in interest from large investors should be enough,” said Noel Acheson, author of Crypto is Macro Now” newsletter.
Others point out that hype surrounding a potential spot-bitcoin ETF has come in the past, without regulators ever approving such a product.
“People are speculating that BlackRock’s massive presence in the financial markets will help it gain recognition. I’m not there yet,” said Michael O’Rourke, chief market strategist at Jones Trading. “The SEC is aggressively cracking down on the crypto space, and it seems a bit early for such a face.”

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