Bitcoin Soars to Record High, Recovers from FTX Scandal

Less than two years after the collapse of the crypto exchange FTX rocked the digital currency market, Bitcoin has surged to an all-time high, marking a remarkable recovery.

On Tuesday, the world’s largest cryptocurrency briefly surpassed $68,800, according to CoinMarketCap, eclipsing its previous record set in November 2021. This resurgence comes in stark contrast to the turmoil that followed the FTX scandal, which severely shook confidence in digital currencies and caused prices to plummet.

The price of Bitcoin has skyrocketed nearly 200% over the past year, buoyed by anticipation and subsequent regulatory approval of spot Bitcoin exchange-traded funds (ETFs). These ETFs have opened up access to a broader range of investors, contributing to Bitcoin’s renewed popularity.

Since the approval of Bitcoin ETFs in January, the cryptocurrency’s price has surged by approximately 60%. ETFs provide a convenient way for investors to gain exposure to assets like gold, junk bonds, or Bitcoin without directly purchasing the assets themselves.

Another factor driving Bitcoin’s price rally is the upcoming “halving,” expected in April. Halvings reduce the rate at which new coins are mined and created, effectively lowering the cryptocurrency’s supply.

Bitcoin’s history is punctuated by dramatic price swings, often occurring suddenly and at all hours due to round-the-clock trading. From its pandemic-era low of just over $5,000, Bitcoin soared to nearly $69,000 in November 2021, driven by increased demand for technology products.

However, prices took a hit during a series of aggressive Federal Reserve rate hikes aimed at curbing inflation and reducing investment risk. The collapse of FTX in 2022 further dampened confidence in crypto, leaving a lasting impact on the market.

Despite recent excitement surrounding Bitcoin’s resurgence, experts caution that crypto remains a risky investment with unpredictable fluctuations in value. Investors should be aware that gains can be just as swiftly reversed, emphasizing the volatile nature of the cryptocurrency market.