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What lies behind this outstanding rise? To fully understand it, we first need to look back at Bitcoin's tumultuous journey over the past few years. After going through a turbulent period in 2022, rocked by financial scandals and dramatic price declines, Bitcoin has come back stronger than ever. How? Thanks to a series of intelligent measures that have propelled this resource to an all-time peak in popularity.
One of the factors behind this renaissance is the introduction of new financial instruments, such as ETFs (Exchange Traded Funds), which allow investors to participate in the Bitcoin market without having to hold Bitcoin directly. Meaning that you can now invest in Bitcoin with the same ease as in the shares of other popular companies, while benefiting from the cryptocurrency's incredible growth potential.
Just recently, the approval of ETFs by the U.S. Security and Exchange Commission paved the way for a wave of enthusiasm among institutional investors, who quickly recognized Bitcoin's unlimited development potential. Major corporations, pension funds and even insurance companies have jumped on the Bitcoin bandwagon, fuelling its meteoric rise on the markets.
Another fact that has helped Bitcoin soar is the long-awaited phenomenon of "halving". This phenomenon, which occurs approximately every four years, halves the reward given to Bitcoin miners for each block added to the blockchain. Bitcoin's infrastructure relies on "miners", actors who serve to maintain the register of transactions between owners of this crypto-asset. To ensure the validity of exchanges and add a "block" to the transaction chain, their computers must solve highly complex calculations - and the miner who succeeds receives bitcoins as a reward. Whenever halving has occurred in the past, the price of Bitcoin has soared, offering investors a golden opportunity for astronomical gains.
Bitcoin's recent surge is also part of a broader context of impressive recovery in global financial markets. As stock market indices reach all-time highs, more and more investors are turning to alternative assets like Bitcoin, attracted by its exceptional return potential.
However, we must remain cautious, as there is no guarantee that this rise in Bitcoin prices will last indefinitely. As is always the case with Bitcoin, a witness to extreme volatility, enthusiasm is often followed by a sudden drop in price. Indeed, after reaching a new record high, the price of Bitcoin underwent a notable correction, underlining once again the unstable nature of this cryptocurrency.
Simple price rise or stable surge?
No doubt our community will be keeping a close eye on the subject!
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