Discover Bitcoin breaks another record and is worth US$70 thousand

After the American government’s announcement last year to begin regularizing cryptocurrency transactions, ETFs have become a major attraction for investors who are injecting billions of dollars, demonstrating the great enthusiasm in the sector.

With such enthusiasm, ethereum promised an update to its platform, just as Bitcoin also announced a “halving” for April this year, which further encourages investors to inject more capital into cryptocurrencies. However, the cryptocurrency market is very volatile, with short buying and selling periods, generating rapid appreciation and depreciation of traded items; Therefore, on the same day that Bitcoin reached the US$70,000 mark for the first time, its value was already below US$68,000.

Bitcoin breaks another record

_{The Bitcoin symbol being held by a person (Photo: reproduction/geralt/Pixabay)}

The volatility of cryptocurrencies (Bitcoin breaks another record)

According to the co-founder of cryptocurrency lending platform Nexo, Antoni Trenchev: “volatility defines bitcoin bull markets, and 2024 will be marked by sudden and distressing drops of 10% to 20%”, which explains the constant rise of Bitcoin in recent months, although with some drops during a day or two, in which this volatility is demonstrated by market actors looking for the best buying and selling gaps, with the best prices, in order to to maximize their profits, even more so during these first months of the year when cryptocurrencies have been receiving relative priority by investors.

Cryptocurrencies back in the spotlight

Since May 2022, when Bitcoin reached its lowest point in value following the collapse of “stablecoin” TerraUSD, cryptocurrencies began to be viewed with great suspicion by the market, as investing in them could become a huge loss due to the ups and downs of the sector, such as the bankruptcy of numerous companies linked to it in 2022.

However, an announcement from the FED (American Central Bank) made in December 2023, called for the regularization of transactions carried out on the Stock Exchange, allowing greater security for a “tracking” better and, in addition, in January of this year alone, nine index funds (ETFs) were created, being companies specialized in providing cryptocurrency offering services, as well as advice on the sector.

Based on these factors, investment in cryptocurrencies has regained its position as a safe business for investors, evidenced by its current appreciation, which is close to the numbers observed in 2021 and the beginning of 2022.

Featured Photo: stack of bitcoins (Reproduction/Quince Creative/Pixabay)