Bitcoin on Thursday touched a six-month high, its highest since August 2022, as investors gained confidence in the economic outlook and dismissed concern about regulatory scrutiny of the sector.
The world's largest cryptocurrency reached $24,895 today after jumping 9.5 percent to $24,400 on Wednesday. So far, the cryptocurrency has increased nearly 50 percent this year.
Bitcoin was around $16,500 in early January, where it had weakened due to the collapse of the crypto exchange FTX and a sell-off in many assets as global central banks raised interest rates aggressively.
Apart from events which are crypto-specific, such as regulatory changes and collapses of major industry players, most larger cryptocurrencies have traded similarly to other assets which are considered risky, especially in economically uncertain times, such as equities.
Today, global stocks saw an increase as economic data from around the world drove hopes the economy might face a softer landing than feared a few months ago, even as interest rates threaten to remain higher for longer than expected.
According to a crypto investment platform Q9 Capital, "Bitcoin bolted past $24,000 for the first time in two weeks after surging more than 8 percent over the past 24 hours. The asset had dropped below $21,600 in recent days amid growing anxiety about crypto regulation and future Fed moves to tame inflation, but those concerns seemed to fade quickly.”
On Monday, in the latest regulatory challenge for the crypto sector, Paxos Trust Company the firm behind leading exchange Binance's stablecoin said the U.S. Securities and Exchange Commission told the company it should have registered the product as a security and is considering taking action against the platform.
(With input from Reuters)
(Edited by : Vivek Dubey)
