Bitcoin has been setting off price fireworks for a few days and has reached highs that have not been seen in around a year and a half. The price is currently trending towards 34,500 US dollars (around 32,500 euros). So are the bears on the crypto market already on the retreat? Many signs point to this.
In April and November 2021, the Bitcoin price was higher than ever at around $69,000. But in 2022, the value of the cryptocurrency surprisingly fell. Recently, however, there seems to have been an improvement. In the last few days alone, the price has risen by a good fifth and is currently as high as it was last in May 2022. And the trend could continue.
Bitcoin spot ETF announces itself and influences price
Originally, a relevant price increase was expected for Bitcoin as soon as the US Securities and Exchange Commission (SEC) approved one of the Bitcoin spot ETFs applied for there and made it tradable on US stock exchanges. This would bring investments to the Bitcoin market on a scale that has never been seen before.
But commission chief Gary Gensler is fighting tooth and nail against such approval. However, his position now considers him to be completely isolated even within the SEC. Many observers expect the approval of the first Bitcoin ETF to be imminent. Financial giant BlackRock has already listed its iShares Bitcoin ETF and is considered the top candidate for the first approval granted. But other large financial institutions such as Grayscale and Fidelity are also waiting for the green light. Many private investors seem to be convinced that it can only be a matter of days or weeks. They could be partly responsible for the price increase.
But caution remains advised. An influential group led by Senator Elizabeth Warren is fighting tooth and nail against changes to the status quo. It is still unclear who will prevail in the short term.
Also read: Digital money – where can you pay with cryptocurrency?
Is the banking crisis in China causing the Bitcoin price to rise?
However, data suggests that the US market may not be primarily responsible for the current price increase. Rather, Asia is currently driving prices. It is also possible that a possible new, moderate course by Chinese officials towards Bitcoin could be the trigger for the recent price development. A court in Shanghai issued a Bitcoin-friendly ruling in September. This is in contrast to the harsh stance against Bitcoin that the Chinese government has been taking since 2021. Since China’s banks are currently in a serious crisis, it is possible that investors in Hong Kong will increasingly buy into the crypto market.
How sustainable Bitcoin’s current rise is remains to be seen. Above all, the SEC’s upcoming decisions in this regard will set the direction in the short and medium term.
Should you buy Bitcoin now?
A high rate always causes the price of Bitcoin to rise. Now is not necessarily the best time for everyone to purchase the cryptocurrency. A purchase is recommended for those who want to invest for the long term and can ride out a possible low. Especially since, as already mentioned at the beginning, the signs definitely indicate that the upward trend in the Bitcoin price is continuing.
Those who bought Bitcoin at the end are particularly lucky. They have now doubled the value of their investment. Between the beginning of November 2022 and the beginning of January 2023, Bitcoin was cheaper than it had been for a long time.
Also Read: Best Apps for Buying and Selling Crypto
The first Bitcoin was created in 2009. Bitcoin is therefore the oldest cryptocurrency, the total amount of which is capped at 21 million. When purchasing, a distinction is made between real Bitcoin and financial products based on Bitcoin. Examples of this are Bitcoin CFDs, ETPs, ETNs or certificates. All forms are traded primarily via crypto exchanges such as Binance or Coinbase. But brokers such as Justtrade, Trade Republic and finanzen.net Zero as well as Bitcoin marketplaces such as bitcoin.de also offer the digital currency. Purchases are usually possible with PayPal, credit card, instant transfer or SEPA.