Bitcoin hits its highest level in a year on renewed enthusiasm

(Bloomberg Opinion) — Bitcoin hit its highest level in a year amid renewed interest in the digital asset, despite several challenges for the industry.

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The first digital currency rose to $31,013, its 2023 high and its highest level since June 2022, according to Bloomberg data. The rally has taken Bitcoin to around $31,307, up 80% since the start of the year. Other cryptocurrencies followed suit, with Ether rising.

It’s a significant development and a show of resilience for a market that many thought was doomed after a series of high-profile frauds and corporate failures left a stain on the sector in the eyes of investors.

„From a bitcoiner’s point of view, the token’s most basic investment thesis is coming true: inflation, money management, banking crises, sovereign debt concerns, doubts about bitcoin’s balance sheet. USD cryptocurrency enthusiasts are having an 'I told you so’ moment,” said data and analytics at FRNT Financial. Leader Strahinca Savic said: „Despite the difficult environment, I would not describe the rally as new all-time, but because of it.”

Recently, BlackRock Inc. ’s surprise release of a US spot bitcoin ETF has reignited cryptocurrency interest, with some in the market hoping such a product — which currently lacks — will receive regulatory approval. An endorsement, whatever the odds, would be a win for fans who have longed for such an investment product for years.

„BlackRock’s filing is great news given bitcoin’s close ties to its regulators and strong ETF approval track record,” K33’s Bendik Shea and Vetle Lunde wrote.

They added: „An approval would have a profound impact on Bitcoin’s market structure, as it would lower barriers for financial advisors to provide exposure to BTC through an affordable investment vehicle with daily creations and redemptions provided by a trusted provider.”

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Other recent news also bolstered confidence in the crypto faithful’s rally. Citadel Securities, Fidelity Digital Assets and Charles Schwab Corp. called EDX Markets. A new cryptocurrency exchange platform backed by companies including has announced that it has gone live. Also, among other principals, JPMorgan Chase & Co. It rolled out one of the most high-profile projects to bring blockchain technology to traditional banking, introducing euro-denominated payments to corporate customers using its JPM coin.

„The effects of the so-called 'crypto winter’ are less visible today than they were a year ago, as various jurisdictions and institutional players continue to embrace cryptocurrency-related initiatives,” Coinbase’s head of research David Duong said in a recent note.

Translated by Paolo Torre.

Nota Original: Bitcoin hits 1-year high as crypto recovers from scandals

©2023 Bloomberg LP

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