New record for Bitcoin: now also over 70,000 dollars | News

EXPLAINED. What are cryptos and how do they work?

Bitcoin peaked at $70,085.85 on Friday. Afterwards, the cryptocurrency fell to around $68,000.

On Tuesday, the value of the largest cryptocurrency had already risen to more than $69,000, the old record level reached in November 2021.

The value of Bitcoin has been rising all year. At the beginning of 2024, the coin was still worth 43,000 dollars, but since then more than 60 percent has been added. The increase is due to the approval for listed bitcoin funds in the United States. This has made the cryptocurrency more accessible to a larger group of investors, which drives demand and therefore the price of the digital currency. They can now invest in bitcoin without having to own the cryptocurrency itself.

Meanwhile, traders’ attention is increasingly turning to other currencies in their search for big profits. For example, another cryptocurrency, the ether, is approaching the $4,000 mark for the first time since the end of 2021. It is expected that the coin will be the next to receive approval for tradable funds. So-called memecoins, crypto coins with an amusing approach, are also becoming more popular among speculators. They are often hardly worth anything, but that is precisely why large profits can be made from them.

Cryptocurrencies are considered speculative by many. Its price movements are often very erratic. For example, bitcoin was already worth $69,000 in 2021, but at the beginning of 2023 it was only worth $16,600.