Since the early May 2022 cryptocurrency crash, cryptocurrency, in general, has seemingly lacked excitement. However, Bitcoin has seen impressive growth over the course of 2023. It has seen gains of 173% to crest over $45,000, marking a 21-month record high. This comes as optimism for exchange-traded Bitcoin swells, but what could this mean for the broader market?
Today, Bitcoin peaked at $45,925.82, according to Coinbase, which marks the high end of the last 21 months. Bitcoin peaked at around $68,789 in 2021, so while we are still short of that, this is still a significant bounce back from the $16,600 price we saw this time last year. This swell is thanks to reports that the U.S. Securities and Exchange Commission regulators may be willing to sign off on spot Bitcoin exchange-traded funds (ETFs).
Further, cryptocurrency has seen a bump due to reports of “rising bets that major central banks will cut interest rates this year,” thereby “helping shake off the gloom that had settled over crypto markets following the collapse of FTX and other crypto-business failures in 2022.” Of course, this somewhat follows the election year as the economic landscape adjusts to accommodate political aspirations.
Regardless of the economic impacts, what could this growth in Bitcoin mean for the tech industry in general? Over the past year cryptocurrency has made more headlines in terms of ransomware and data breaches than significant growth and profits. This swell is likely a boon to cybercriminals who have had “diamond hands,” as it were, holding assets until they rebound. Beyond that, though, it is somewhat unclear what will happen, especially when it comes to things like the graphics card shortage, which has recently rebounded. Perhaps we will see some pressure get applied to the market, which companies like NVIDIA would like to see, given the restrictions regarding shipping products overseas.
In any event, it is certainly an interesting time to watch cryptocurrency, and we will have to see how the market develops. If the ETFs are approved, we could see the value of Bitcoin continue to swell up to and go past previous highs.
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