Crypto News– Bitcoin price: After enduring a substantial devaluation throughout the majority of 2022, Bitcoin has quietly undergone a remarkable resurgence, witnessing its price double over the past year.
In the most recent week, the price of this widely followed cryptocurrency surged to an 18-month high of US$37,344, registering a year-to-date growth of over 100%. However, it’s worth noting that despite this impressive rally, Bitcoin has not yet reclaimed its previous all-time highs of US$67,617 recorded in November 2021.
Why Has Bitcoin Price Doubled Quietly This Year?
Analysts interviewed by Global News attribute this recent positive momentum to the cryptocurrency space finding its footing after a tumultuous year marked by scandals and challenging market conditions. The optimism surrounding hopes for increased mainstream adoption of Bitcoin and other digital assets in the coming months is identified as a driving force behind the recent surge.
Greg Taylor, Chief Investment Officer at Purpose Investments, underscores the significant shakeout in the crypto market throughout 2022, with many investors opting to exit the asset following its exponential increase in value towards the end of 2021. Adding to the complexity, central banks worldwide embarked on tightening their interest rates in 2022, contributing to a broader market shift.
Alex Tapscott, Managing Director of the Digital Asset Group at Ninepoint Capital, highlights the resulting flood of capital exiting the stock market and seeking refuge in safe-haven assets such as the U.S. dollar. As equity markets grappled with challenges amid the uncertainties linked to rising interest rates, the cryptocurrency market, including Bitcoin, was not immune to the prevailing market pressures.
Tapscott remarks, ‘Bitcoin and the asset class as a whole didn’t stand a chance.’
Furthermore, the cryptocurrency realm faced existential challenges, witnessing the closure of several exchanges, the collapse of numerous cryptocurrency tokens, and the high-profile demise of FTX. Once valued at a peak of US$32 billion and lauded as an industry leader, FTX found itself at the epicenter of a trial that recently resulted in founder Sam Bankman-Fried being convicted of defrauding investors. In the wake of these events, the broader crypto market has shown resilience, with Bitcoin’s recent doubling in price quietly asserting its endurance and continued relevance in the evolving financial landscape.
Bitcoin (BTC) Price Projection of 600,000 Dollars Anticipated by Cathie Wood
Cathie Wood, the CEO of Ark Invest, has reiterated her bold prediction that the price of Bitcoin could reach an astonishing $600,000. This forecast was reiterated during a recent interview with Yahoo! Finance, where Wood discussed the potential of Bitcoin and the broader digital currency market. The conversation also touched on the imminent launch of new digital asset ETFs by Ark Invest in collaboration with 21Shares and the anticipated approval of a spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC).
In the interview, Wood highlighted the revolutionary nature of Bitcoin, asserting that her firm’s “base case” as of today is a price range of $600,000 to $650,000. She underscored Bitcoin’s unique position as the first global, digital, private, and rules-based monetary system, contrasting it with the current state of global monetary policy, which she described as unhinged.
Wood emphasized Bitcoin’s potential, citing its scarcity and the growing interest from institutional investors. She stated, “There will only be 21 million Bitcoin ever… and we think that institutions if the SEC blesses a Bitcoin ETF, will feel like the coast is clear.” This sentiment reflects Wood’s confidence in Bitcoin’s role as a store of value and its potential to attract further institutional adoption in the future.
The discussion also delved into the prospects of a spot Bitcoin ETF, a development actively pursued by Ark Invest in collaboration with 21Shares. Wood expressed her optimism regarding the changing attitude of the U.S. Securities and Exchange Commission (SEC), stating, ‘This time… we got questions back from the SEC, which means they’re engaged.’ She views this as a positive shift, suggesting an increased likelihood of approval. The SEC’s decision, anticipated by January 10th, could have a substantial impact on the adoption and valuation of Bitcoin.