For the first time since May 2022, the bitcoin price has reached $40,000. That happened at the Singapore stock exchange. The price of the digital currency has now increased by 142 percent in 2023.
The price of the cryptocurrency collapsed at the end of last year after the bankruptcy of crypto trading platform FTX, owned by Sam Bankman-Fried. That bankruptcy, for what Bankman-Fried is now on trial in the US, led to a billion-dollar noose for investors. At least eight billion dollars in customer money had disappeared.
As a result, confidence in the currency decreased. The price of bitcoin, which reached its highest value ever in November 2021 at $69,000, collapsed. Trade also slumped.
But lately there has been more trading in the cryptocurrency. There is more confidence in the currency again and it is expected that the demand for bitcoins will rise again. Several major financial companies recently filed applications with the US Securities and Exchange Commission (SEC) for the first publicly traded bitcoin funds. Those applications include BlackRock, the world’s largest asset manager. BlackRock wants to launch an ETF (an investment fund) in bitcoins. When such a large, renowned party invests in bitcoins, it gives investors confidence.
If the American regulator approves the applications, this will result in billions of dollars in additional crypto investments. The SEC may give approval for the first listed bitcoin funds next month.
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