Please ensure Javascript is enabled for purposes of website accessibility
Bitcoin Hits $41,000 for 1st Time Since April 2022. What's Behind the Price Surge?
gvw_ap_news
By Associated Press
Published 5 months ago on
December 5, 2023

Share

NEW YORK — Bitcoin is once again having a moment. On Monday, the world’s largest cryptocurrency soared past $41,000 for the first time in over a year and a half — and marking a 150% rise so far this year.

The Rise and Fall of Bitcoin

Volatile bitcoin rocketed from just over $5,000 at the start of the pandemic to nearly $68,000 in November 2021, according to FactSet, a period marked by a surge in demand for technology products. Prices fell back to earth during an aggressive series of Federal Reserve rate hikes aimed at taming inflation and then the collapse of FTX, one of the biggest companies in crypto.

Investors Return to Bitcoin

When 2023 began, a single bitcoin could be had for less than $17,000 after losing more than 75% of its value. Investors, however, began returning in large numbers as inflation started to cool. And the collapse of prominent tech-focused banks actually led more investors to turn to crypto as they bailed out of positions in Silicon Valley start-ups and other risky bets.

The Role of Exchange Traded Funds

But fueling this latest rally are prospects for the possible approval of spot bitcoin exchange traded funds — a pooled investment security that can be bought and sold like stocks.

Regulatory Challenges and Opportunities

Industry advocates say this new way of investing in bitcoin at spot prices, instead of futures, could make it easier for anyone to enter the cryptoverse while lowering some of the well-documented risks associated with investing in cryptocurrencies. Regulators have previously rejected bitcoin spot ETF applications, but recent wins for some crypto fund managers have improved odds for a first approval, perhaps as soon as next month.

Current State of Bitcoin

Bitcoin’s current rally also arrives during an incredibly disruptive period for cryptocurrencies. Just last month, the U.S. government slapped Binance, the world’s largest crypto exchange, with a $4 billion fine as its founder Changpeng Zhao pleaded guilty to a felony charge.

Investor Caution

Despite the recent excitement around bitcoin, experts still maintain that crypto is a risky bet with wildly unpredictable fluctuations in value. In short, investors can lose money as quickly as they make it.

Other Cryptocurrencies

The stocks of some other crypto players have also seen rises over recent months, but not with the same speed or heights as bitcoin. Ethereum, for example, stood at $2,223 Monday afternoon, up 85% since the start of 2023. Meanwhile, Binance Coin and Dash are down about 5.25% and 24.37% for the year, respectively, with Monday afternoon prices of roughly $231 and $32.

 

RELATED TOPICS:

DON'T MISS

The Pickle Flavor Frenzy and Its Rise in Food Trends

DON'T MISS

Kate Hudson Had a Lifetime to Make a Record. The Result is ‘Glorious,’ Out in May

DON'T MISS

Long-Lost First Model of USS Enterprise from ‘Star Trek’ Boldly Goes Home

DON'T MISS

California Leaders Take Sides in Monumental Supreme Court Case on Homelessness

DON'T MISS

Man Sets Himself on Fire Outside Trump Hush Money Trial Court

DON'T MISS

McDonald’s Ice Cream Machines Are So Unreliable They’re a Meme. They Might Also Be a Climate Solution.

DON'T MISS

Real Estate Experts Talk Fresno’s Economic Future. Are Tough Times Ahead?

DON'T MISS

Unlocking the Secrets to Fresno State’s Superb Baseball Season

DON'T MISS

‘This Is How to Improve Reading Proficiency. We Just Have Execute It’: FUSD Board President

DON'T MISS

Does Dyer Support (or Endorse) Bredefeld for Supervisor?

UP NEXT

Wired Wednesday: How High Will the Price of Gold & Silver Go?

UP NEXT

Who Owns Businesses in California? A Lawmaker Wants the Public to Know

UP NEXT

Did City Council Finally Give New NW Fresno Costco a Green Light?

UP NEXT

BTC Scammy Scams, Impact of Blockchain on Global Markets: Crypto The WonderDog Show

UP NEXT

Barbara Corcoran: 1% Interest Rate Drop Will Send Housing Prices ‘Through the Roof’

UP NEXT

Biden Pledges to Block Japanese Takeover of US Steel and Promises Tariffs on Chinese Steel

UP NEXT

Southern California City Council Gives Key Approval for Disneyland Expansion Plan

UP NEXT

Tesla Wants Shareholders to Reinstate CEO Elon Musk’s $56 Billion Pay Package

UP NEXT

Boeing in the Spotlight as Congress Calls a Whistleblower to Testify About Defects in Planes

UP NEXT

Coalition: CA Lawmakers Need to Roll Back Proposed ‘Utility Tax’

California Leaders Take Sides in Monumental Supreme Court Case on Homelessness

11 hours ago

Man Sets Himself on Fire Outside Trump Hush Money Trial Court

23 hours ago

McDonald’s Ice Cream Machines Are So Unreliable They’re a Meme. They Might Also Be a Climate Solution.

24 hours ago

Real Estate Experts Talk Fresno’s Economic Future. Are Tough Times Ahead?

1 day ago

Unlocking the Secrets to Fresno State’s Superb Baseball Season

1 day ago

‘This Is How to Improve Reading Proficiency. We Just Have Execute It’: FUSD Board President

1 day ago

Does Dyer Support (or Endorse) Bredefeld for Supervisor?

1 day ago

Get a 3D First Look at Merced’s High-Speed Rail Station Design

1 day ago

California Court to Decide on Transgender Ballot Measure Wording

1 day ago

Rare House Vote Sees Ukraine, Israel Aid Advance as Democrats Join Republicans

1 day ago

The Pickle Flavor Frenzy and Its Rise in Food Trends

You might have noticed that the tangy taste of pickles has taken over more than just the condiment aisle. From pickle-flavored popcorn to pi...

11 hours ago

11 hours ago

The Pickle Flavor Frenzy and Its Rise in Food Trends

11 hours ago

Kate Hudson Had a Lifetime to Make a Record. The Result is ‘Glorious,’ Out in May

11 hours ago

Long-Lost First Model of USS Enterprise from ‘Star Trek’ Boldly Goes Home

11 hours ago

California Leaders Take Sides in Monumental Supreme Court Case on Homelessness

23 hours ago

Man Sets Himself on Fire Outside Trump Hush Money Trial Court

24 hours ago

McDonald’s Ice Cream Machines Are So Unreliable They’re a Meme. They Might Also Be a Climate Solution.

1 day ago

Real Estate Experts Talk Fresno’s Economic Future. Are Tough Times Ahead?

1 day ago

Unlocking the Secrets to Fresno State’s Superb Baseball Season

MENU

CONNECT WITH US

Search

Send this to a friend