Bitcoin, the leading cryptocurrency in terms of market capitalization, recently reached a value of over $31,400 per coin on Friday, marking its highest level since 2022, although it later experienced a decline in its value. This development follows Bitcoin’s earlier achievement of surpassing the $30,000 threshold earlier this week, which occurred in response to the financial instability caused by the collapses of Silicon Valley Bank and Signature Bank in April, prompting investors to seek more secure investment options.
Bitcoin has experienced an 87% increase in value this year, with recent gains attributed to heightened interest in cryptocurrencies by major financial institutions. For instance, BlackRock applied to register a bitcoin spot exchange-traded fund last week, as confirmed by a US Securities and Exchange Commission filing, while EDX Markets, a cryptocurrency exchange supported by companies like Charles Schwab, Fidelity Digital Assets, and Citadel, launched its digital asset trading platform this week.
Despite the recent resurgence of interest in cryptocurrencies, regulatory authorities have intensified their efforts to clamp down on the industry, as evidenced by the SEC’s lawsuit against oinbase">Coinbase, the largest cryptocurrency exchange in the US, for allegedly engaging in unregistered brokerage activities. Furthermore, federal regulators filed a lawsuit against Binance, accusing the company of running an illegal exchange in the US and mixing customer assets.
Despite experiencing significant growth in value this year, Bitcoin’s current value remains significantly lower than its record high of over $60,000 in 2021, a decline attributed to the Federal Reserve’s aggressive interest rate policies and the collapse of the FTX cryptocurrency exchange, which triggered a widespread sell-off in the cryptocurrency market last year.
