Since November 2022, the value of Bitcoin, the world's leading cryptocurrency, has surged more than threefold to $52,000. CNN reported that 2022 saw the dramatic collapse of the crypto exchange FTX, leading to liquidity crises in numerous smaller crypto firms.
In 2023, Bitcoin witnessed significant gains, attracting investors back in large numbers in recent weeks. This surge has propelled Bitcoin's market capitalization above $1 trillion for the first time since its peak in 2021, according to CoinMarketCap data.
Unlike traditional currencies, Bitcoin's supply is finite and projected to reach its peak in 2140, as indicated by cryptocurrency price-tracking websites.
The influx of funds into Bitcoin has been bolstered by the recent introduction of exchange-traded funds (ETFs) directly investing in the cryptocurrency. These ETFs have facilitated easier access for retail investors to enter the market. Since January 10, when US regulators approved investment firms to offer such funds, Bitcoin's value has surged by nearly 13%, as per CNN's report.
Despite Bitcoin still being some distance from its all-time high of $69,000 recorded in November 2021, industry experts anticipate further upward momentum in the coming year, potentially surpassing previous peaks.
A significant factor driving this optimism is Bitcoin's upcoming "halving" event—a core feature of its design, which automatically halves the rate of new coins entering circulation approximately every four years.
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