Bitcoin hit a new record high, reaching $66,000 for the first time. As investors hoped for broader acceptance following the successful launch of the first exchange-traded fund for US investors.
While the notoriously volatile digital currency has recently hovered near its previous April high. The price of bitcoin vaulted through it considerably faster. It added nearly a thousand dollars in a minute immediately after the US stock market opened. Big moves tied to important chart levels are nothing new in the cryptocurrency trading world.
“It’s a defining moment,” Jesse Proudman, co-founder and CEO of Makara, a crypto advising firm, said. “It’s no longer a question of whether or not this asset class will survive. I believe that’s a watershed moment in the history of the larger digital-asset class.”
The ProShares Bitcoin Strategy ETF’s popularity has grown even further. With more than 29 million shares traded on Wednesday, more than on the fund’s near-record-breaking debut. This equates to a volume of more than $1.2 billion. The first Bitcoin-linked exchange-traded fund to be listed in the United States debuted on Tuesday. Becoming the second-most highly traded fund ever.
It Climbed to Its Most Recent High atop a Pandemic-Era Tide
Bitcoin has reached a new high amidst a flood of pandemic-era liquidity, speculative bets, and promises of institutional adoption. The ride was bumpy: in June, the token fell below $30,000 because of criticism of its energy use. And also China’s cryptocurrency crackdown. Partially as the crypto sector reacted to China’s broadsides, it began to recover.
Despite all of the price mania, many on Wall Street are skeptical of Bitcoin’s potential in finance. Securities authorities are tightening their grip on cryptocurrency. With the US government effectively barring Coinbase Global Inc.’s Bitcoin lending scheme. Critics have also questioned whether the asset’s scarcity makes it a long-term store of value. Also by pointing to its limited adoption as a currency.
During New York trading hours, Bitcoin reached a high of $66,976, increasing its year gain to about 130 percent. And by bitcoin hit a new record on this day. After falling 73 percent the previous year, the largest digital currency by market value climbed more than 300 percent. As compared to last year and 95 percent this year.
According to Bloomberg Intelligence’s Athanasios Psarofagis. The ProShares fund debut Tuesday was second only to a BlackRock carbon fund in terms of first-day trading volume. With the latter ranking higher due to pre-seed deposits.
Some Wall Street institutions, such as Bank of New York Mellon Corp., Goldman Sachs Group Inc., and Morgan Stanley, have upped their enthusiasm for crypto-related services. Soros Fund Management LLC’s chief investment officer. Dawn Fitzpatrick, said her firm has some cryptocurrencies and that crypto “has gone mainstream.”
At the same time, there is still plenty to be done. About 10% of financial-services businesses are “feeding a frenzy” about crypto, according to SkyBridge Capital. He is also the founder, Anthony Scaramucci. The great majority are skeptical about the asset class.
A new crypto-economy has emerged in the last few years. NFTs, or non-fungible tokens, have risen to prominence as a means of tracking ownership of digital art and valuables.
Decentralized finance, or DeFi, is an ecosystem that allows people to lend, borrow, trade. And also to take out insurance directly from one another without the use of intermediaries like banks.
The achievement comes just in time for Bitcoin’s birthday. The digital currency was established on Halloween 2008. With the publishing of a research paper by a mysterious figure known only as Satoshi Nakamoto.
“Bitcoin: A Peer-to-Peer Electronic Cash System” was the title of the paper. According to CoinMarketCap.com data, it sparked a digital currency revolution that resulted in the launch of more than 12,000 new coins. Cryptocurrencies have a market capitalization of more than $2.5 trillion.