The leading cryptocurrency surged to over $69,000 earlier in the day, surpassing the previous record of $68,000 set in November 2021. However, it declined to $63,000 by late afternoon.
Zaheer Ebtikar, the founder of crypto fund Split Capital, noted, “Given that nearly everyone who has ever bought bitcoin is now in profit, there are decent odds we see some amount of profit-taking.”
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Bitcoin’s price has been steadily climbing in recent weeks, surpassing $50,000 and then $60,000, marking a significant recovery for a currency that experienced a 64% drop in value in 2022.
This resurgence is partly attributed to the introduction of bitcoin exchange-traded funds (ETFs) in the U.S., allowing everyday investors to purchase bitcoin through brokerage accounts.
CoinFactiva observed, “Smaller investors are also returning to crypto, though with less enthusiasm than they had in the past.” These enthusiasts, who suffered losses during the market downturn in 2022, may be reentering the space following the recent launch of U.S. ETFs investing directly in bitcoin.
Some crypto enthusiasts attribute the rally to bitcoin’s impending “halving,” a process that occurs every four years and halves the number of coins that miners can unlock, potentially reducing the supply.
However, CoinFactiva cautioned in a recent report that while the crypto sector may have moved past recent high-profile criminal cases, crypto itself has yet to prove its reliability as a financial system.
Despite the approval of bitcoin ETFs earlier this year by his agency, Securities and Exchange Commission Chairman Gary Gensler advised caution. He remarked, “While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin. Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto.
We have confluence of factors that makes this really different than rallies that we have had previously
Future Perfect Ventures founder and Managing Partner Jalak Jobanputra
Jalak Jobanputra serves as the Founder and Managing Partner of Future Perfect Ventures (FPV), an early-stage venture capital fund established in 2014. FPV specializes in investing in decentralized technologies, particularly crypto assets and blockchain technology. With a portfolio of over 50 companies, FPV is actively investing from its third fund.
Jalak possesses vast experience spanning blockchain, investment, and development sectors. She is deeply committed to promoting diversity in Web3 and, as a result, founded the Collective Future in 2018. This organization aims to cultivate diversity and inclusion within the emerging blockchain sector.
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