BOSTON – Bitcoin remained steady around the US$50,000 mark after briefly surpassing this significant threshold for the first time in over two years, marking a remarkable resurgence following a period of crypto scandals and market downturns that had raised doubts about the industry’s sustainability.
The largest digital asset reached as high as US$50,328 on February 12 in the United States and was trading at US$49,980 as of 7:40 a.m. on February 13 in Singapore.
Bitcoin has tripled in value since the beginning of 2023, rebounding from a 64 per cent plunge in 2022. However, it still trails its all-time high of nearly US$69,000 reached in November 2021.
The significant price fluctuations observed since Bitcoin’s inception over a decade ago have consistently drawn speculators, initially touted as an alternative to traditional financial systems. The recent surge, however, has been propelled by optimism surrounding the approval of exchange-traded funds (ETFs) to directly hold Bitcoin, granted by the United States in January, signaling a broader acceptance within mainstream financial circles.
“There is a lot of talk about an influx of capital into this asset,” commented Mr. Matt Maley, chief market strategist at Miller Tabak + Co. “I’d also note that momentum players are becoming increasingly enthusiastic.”
The resurgence in crypto prices coincides with a renewed embrace of risk among investors in broader financial markets, fueled by expectations that the Federal Reserve is nearing a loosening of monetary policy.