The value of Bitcoin exceeds 50,000 euros, the highest in 2 years

They thought he was gone, but he came back: after more than two years, the Bitcoin reaches altitude again $50,000. The most famous cryptocurrency has seen its prices more than double in the last 12 months, while from early January 2024 to today it has recorded an increase of +16%.

Bitcoin at its highest value in two years

“50 thousand dollars is a significant achievement. After the launch of ETFs last month had not produced any push but rather a bearish movement,” commented Antoni Trenchev, co-founder of Nexo, a cryptocurrency trading platform.

They appear to be at least four the reasons underlying Bitcoin’s rises.

The first reason is related to China: During the Lunar New Year holiday, which falls on February 10, the purchases in China are skyrocketing, just as happens during the Christmas holidays all over the world. This is proof of how much the Dragon’s economy, although held back by colossal real estate crashes like that of Evergrande, is capable of impacting the performance of global markets.

The second reason concerns both the cryptocurrency market and any other speculation on the stock market: investors made their bets in response to the Federal Reserve’s cuts in the cost of money. When borrow money becomes easierinvestors react by pouring in greater liquidity in the markets. And the cryptocurrency market is no different. Lower rates also push investors to perform reckless operationsi.e. speculative transactions with greater risk, but with higher profit margins.

The third The reason concerns the greater volume of investments now favored by the new ETFs. According to some analysts, today Bitcoin would have tied its own even more trend to that of dollarwhich has been gaining ground against the euro since the beginning of 2024.

The fourth reason is related to the scarcity effect: the so-called Bitcoin halvingthat is, the halving. Every 4 years, to limit the quantity of Bitcoin in circulation and therefore to prevent excess supply from pushing its value downwards, the reward for those who mint Bitcoin is halved. Minting Bitcoin (or engaging in “mining”, as they say in jargon) consists of using complex algorithms to generate Bitcoin. All this requires the use of specific software and computers with high computing capabilities.
The next halving date is for April 17, 2024.
The halving Bitcoin production slows and the effect on the markets is the upward push in the price of the cryptocurrency in circulation, as had already happened four years ago.

Bitcoin, maximum price

We are still far, however, from the absolute record recorded by the trend of Bitcoin November 2021: then the digital currency reached i 69 thousand dollarsthe.

Today the capitalization of Bitcoin passed the 975 billion dollars. In 2021, at the time of the maximum rise, the market capitalization was around 1,200 billion.

Today Bitcoin is listed $49,923.90 (46,315.65 euros).