Bitcoin to the moon? Here’s why it’s near an all-time high
$Bitcoin(BTC.CC$
Last month, as bitcoin approached $45,000, JPMorgan Chase CEO Jamie Dimon compared the cryptocurrency to a Pet Rock and said people need to “stop talking about this s—.”
Last month, as bitcoin approached $45,000, JPMorgan Chase CEO Jamie Dimon compared the cryptocurrency to a Pet Rock and said people need to “stop talking about this s—.”
Now, bitcoin investors are laughing all the way to the bank.
The cryptocurrency is up a whopping 20% in just five days. And with Wednesday’s gains, it’s nearing its all-time high of around $69,000 set in November 2021, the last time bitcoin traded above $60,000.
The rally is partly driven by billions of dollars flowing into the cryptocurrency after the US Securities and Exchange Commission green lit bitcoin exchange-traded funds last month.
The other major factor at play is the upcoming “halving” of bitcoin. Halving refers to the built-in feature of bitcoin that automatically reduces the rate of new coins entering circulation. It takes place roughly every four years and, in theory, pushes the price of bitcoin higher because it creates more scarcity of an already finite currency.
This happens because the bitcoin miners (who are behind programs used to solve complex math problems that are intrinsic to using the token) see their bitcoin-denominated reward cut in half when a threshold is reached.
In the past, bitcoin halvings have catalyzed significant bullish periods. But there’s no hard rule this is the outcome each time. Any number of events — such as the prospect of new regulations — could take a bite from any potential gains that come from a halving.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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