Bitcoin hits 18-month high record, surpasses $34000 mark

Bitcoin is one of the most popular and highly-valued cryptocurrencies in the world. The currency was one of the main cryptocurrencies. During the COVID-19 pandemic, Bitcoin’s price dropped considerably due to market uncertainty and fewer economic activities in the crypto sector. 

Possible Reasons Behind Bitcoin’s Price Rise

The increase in Bitcoin’s prices has hit an 18-month high record. Since May 2022, this surge has been especially significant. The price has increased considerably by more than 10.5%. The cryptocurrency’s price has doubled. The primary reason behind this price rise is possibly because of crypto euphoria. Many crypto enthusiasts are anticipating the Bitcoin ETF will be soon approved by the US Securities and Exchange Commission (SEC). 

Some analysts also believe that widespread acceptance of ETF in the US crypto market can boost the crypto market more. YaCrypto is a crypto trading platform that deals with Bitcoins and Ethereum. Therefore, users can check and see Bitcoin ETFs on such platforms too. 

Bitcoin ETF’s Specialities

Bitcoin ETF will offer a bridge between the world of digital assets and traditional financial markets. These ETFs will introduce a broader spectrum of crypto investors. Bitcoin and its rival cryptocurrencies will play a more important role in the international financial arena. The reason behind Bitcoin’s 18-month high record price is largely due to the positive sentiments surrounding the Bitcoin ETF.

Factors Determining Bitcoin’s Prices

Bitcoin has created an 18-month high record but for ordinary investors, it is necessary to understand the main factors that determine the prices. Bitcoin, unlike fiat currency, is not issued by any central banks. This is why prices can fluctuate substantially.

• News and media coverage- Generally, positive news or media coverage can lead to massive price rises, just like this time. Negative news, fake news, and hostile media coverage can erode the confidence of the users and lead to a fall in prices.
• Market demand and Bitcoin’s supply- The law of supply and demand in Economics influence Bitcoin’s price and other cryptocurrencies. 
• Production costs of Bitcoin do not remain constant. Hence, it causes price fluctuations.
• Number of rival cryptocurrencies- The growing popularity of rival cryptocurrencies can negatively affect Bitcoin’s prices and vice-versa. 
• Relevant cryptocurrency regulations on its use and sale

Impact of Bitcoin’s Resurgence

The record increase in Bitcoin’s price is an indication that crypto investors are gaining confidence. The circumstances involving the broader financial ecosystem are becoming favorable. In 2021, Bitcoin’s value in similar circumstances had risen by 107 percent. It contributed around $330 billion in market capitalization. Moreover, such sharp rises in cryptocurrencies lead to more enthusiasm among investors and traders. It also may create more landmark changes in the economic and legal policies of countries. Similarly, some governments oppose Bitcoins and cryptocurrencies. Fortunately, these positive vibes can increase credibility and make it more acceptable among the people. 

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Conclusion

Bitcoin has created a sensation in the crypto market by hitting an 18-month high record. The widespread acceptance of the Bitcoin ETF is one of the main reasons behind such a rise. This has generated a lot of enthusiasm among crypto investors. However, it is also equally important to remember that market volatility continues to influence Bitcoin prices. Therefore, proper research is required before investing.