Bitcoin Rallies, on Hopes of Renewed Interest , Among Mainstream Investors.
On March 4, the price of Bitcoin broke $65,000, bringing it closer to returning to an all-time high reached in November 2021.
NBC reports that the latest rally has been driven by hopes that the launch of bitcoin exchange- traded funds will expand bitcoin's pool of buyers.
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In 2024, the cryptocurrency has gained over 48%, rapidly approaching its record intra-day all-time high of over $68,000.
In January, Bitcoin ETFs were first approved by the Securities and Exchange Commission (SEC).
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The SEC said the approval of the ETFs were meant to make it easier for investors to gain exposure to Bitcoin without having to actually own the digital coins.
NBC reports that the world of crypto is also banking on a potential rally following a technical event known as "halving" scheduled to occur in April.
This event will see the rate of supply for new bitcoin to decline, which could cause the value of the cryptocurrency to increase if demand remains unchanged.
Some mainstream investment experts have still urged caution when it comes to investing in the controversial cryptocurrency.
With equities, you own a share of a company that produces goods or services, and many also pay dividends.
With bonds, you get a stream of interest payments, Vanguard statement, via NBC.
Commodities are real assets that meet consumption needs, have inflation- hedging properties, and can play a role in certain portfolios, Vanguard statement, via NBC.
While crypto has been classified as a commodity, it’s an immature asset class that has little history, no inherent economic value, no cash flow, and can create havoc within a portfolio, Vanguard statement, via NBC
