The prices of cryptocurrencies rose on Wednesday in light of the continuous increase in the price of Bitcoin, which rose by another 4%. Bitcoin is currently trading at around $52,000, its highest level since December 2021. The surge has led to raising its market value to one trillion dollars. Ethereum, the second-largest cryptocurrency, also rose by nearly 4% at the time of writing this report, trading at around $2,746.
Here is what you need to know about some reasons for the rise of Bitcoin: 1. The recent success of American exchange-traded funds (ETFs) in direct investment in Bitcoin. The funds have attracted more than $9 billion in net inflows since their launch a month ago. 2. Bitcoin benefits from the increasing interest in the so-called “halving” scheduled in April. Halving is an event in which the mining reward for each block is halved, reducing the supply amid growing demand and leading to upward momentum in prices. Bitcoin halving occurs every four years, and it is part of Bitcoin’s monetary policy designed to control the inflation of supply by reducing the rate at which new bitcoins are created.
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Shady Fouad is a technical analyst at LDN Company
Shady's strategic vision in the currency markets is reinforced by more than fifteen years of trading experience, which enables him to blend economic and technical analyzes with high efficiency, and find the best investment ideas for traders.
