The price of Bitcoin surpassed $42,000 early on Monday, its highest value in 2023, and a figure not seen in 20 months.
The surge follows last week’s confirmation that US regulators, the SEC, has formally engaged with asset managers including Blackrock, ahead of an anticipated decision of approval of a bitcoin exchange-traded fund, one that would indirectly open Bitcoin trading to traditional stock market investors.
In addition to regulators' seal of approval, industry experts are noting that recent scandals and the associated clearing out of bad actors from the market, and an upcoming halving event are fueling investor confidence.
Zurich-based deVere Group CEO Nigel Green shared:
“The CZ/Binance scandal and the FTX collapse which resulted in a month-long trial which convicted the FTX founder Sam Bankman-Fried of seven counts of fraud and conspiracy, triggered some short-term volatility, but the crypto market has continued to remain bullish.
“In fact, Bitcoin is up by over 150 percent so far this year.
“It appears that law enforcement and regulatory authorities worldwide are cracking down on executives and companies of digital currencies. This greater regulatory scrutiny is seemingly appealing to investors who are piling into the likes of Bitcoin.
“It would also be attractive to institutional investors who bring with them huge amounts of capital.”
In addition to regulatory approval and a clearing of the market, another key factor driving investor confidence is an upcoming halving event.
Scarcity is a key monetary policy of Bitcoin, with the total number of Bitcoins that can ever exist capped at 21 million. The rate of issuance of total circulating Bitcoins is designed to decrease over time.
Early miners of Bitcoin were rewarded with 50 Bitcoins for each block they mined, however, this reward is decreased by half approximately every four years.
Historically, the lead-up time to a halving event is the most profitable time for crypto investors; the next halving event is expected to occur in April 2024.
As of 11:45 GMT Bitcoin is trading at $41,609.30
Lead image: fabrikasimf