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Why Bitcoin price nears $63k all-time high? Main Reasons

Bitcoin price

Bitcoin has resurfaced. For the first time in six months, the original cryptocurrency exceeded the $60,000 mark over the weekend, briefly reaching $62,600. Bitcoin is currently trading around $62,300, close to its all-time high of $64,800 set on April 14.

The uptick was caused by news on Friday that the SEC is set to greenlight Bitcoin futures exchange-traded funds (ETFs).

Bitcoin futures will allow investors to speculate on the price of Bitcoin without having to buy any of the cryptocurrency, and they are expected to be less volatile than Bitcoin itself.

Futures contracts bind investors to buy or sell a commodity at a certain price on a predetermined date. You may, for example, promise to purchasing one Bitcoin for $100,000 in five years. You would have made money if the price of a Bitcoin on that date was $200,000. You would have lost money if the price of a Bitcoin on that date was $50,000.

A futures ETF is not the same as a traditional exchange-traded fund, which Bitcoin supporters have been pushing for. A traditional ETF provides investors with exposure to the underlying asset, in this case Bitcoin, whereas a Futures ETF allows them to bet on the asset’s price. Cryptocurrencies, policymakers have already stated, are too prone to fraud and manipulation to be allowed for ETFs backed by actual Bitcoins.

Regardless, the fact that cryptocurrencies are being integrated into the SEC’s structure boosted Bitcoin and other cryptocurrencies. Ethereum, the most extensively used cryptocurrency, has increased by 13% in the last week. Its current price is $3,847, which is close to its all-time high of $4,168 set on May 11.

Last September, the price of bitcoin began to skyrocket, rising from just under $12,000 at the start of the month to over $60,000 by April. In May, a slew of negative news, including Elon Musk’s withdrawal of blanket support for Bitcoin and China’s crackdown on cryptocurrency businesses, caused the price to plummet. Bitcoin temporarily dipped below $30,000 in July.

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