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Wednesday April 17, 2024

Australia's cypto experts decode secret to Bitcoin unexpected rise

A broker said that reason for unexpected increase in Bitcoin's value is that US regulators approved 11 new Bitcoin investment avenues in January

By Web Desk
March 10, 2024
Several cryptocurrencies can be seen in this photo. — AFP File
Several cryptocurrencies can be seen in this photo. — AFP File

The value of the digital currency Bitcoin has hit an all-time high in its 15-year history. 

The cryptocurrency enthusiasts of Australia said that the current spike in Bitcoin value is like stepping into a "brand new world" for cryptocurrencies, according to experts. The current price hike has buoyed up cryptocurrency enthusiasts as just two years ago, a major issue caused billions of dollars to vanish from the bitcoin industry, according to Mail Online.

According to Melbourne-based Bitcoin broker Jackson Zeng, the reason for the unexpected increase in Bitcoin's value is that the regulators in the United States approved 11 new Bitcoin investment avenues in January. These are known as Exchange Traded Funds (ETFs), and they facilitate the easy purchase of Bitcoin by anyone, much like stock in a corporation.

Since then, almost a billion has gone into these Bitcoin ETFs in the United States. The biggest one, called BlackRock's iShares Bitcoin Trust, has more than billion in it.

Why is Bitcoin's value on the upward surge?

Well, in April, something called "halving" will happen. This means the reward for the people who help keep Bitcoin running will be cut in half. 

Right now, about 900 new Bitcoins are made every day. After halving, it will be 450 Bitcoins a day. This has happened before. Every time it took place, the value of Bitcoin went up a lot.

Experts like Michael Sloggett, a crypto trader, said that this time it is different and exciting. "I firmly believe that's very different from anything we've ever experienced before," Mr Sloggett said.

"It's a brand new world - we are in a new and exciting place we've never been before where anything is possible - both moves up and down."

They believe big companies are buying a lot of Bitcoin, and regular people haven't even started much yet.

David Haslop, who started the Australian Crypto Convention, is also optimistic. He thinks after halving, the value of one Bitcoin could go over 250k in a relatively short period.

Experts are currently awaiting a decision from the Securities and Exchange Commission (SEC) in the US on whether or not to allow individuals to invest in Ethereum, a different cryptocurrency. They are expecting the decision by May 23. If the answer is affirmative, the market may be significantly impacted.

Crypto analysts keep an eye on what will happen next as the value of Bitcoin continues to make headlines. Analysts also believe that the world of cryptocurrencies is entering an exciting phase.