Bitcoin passed 34000 USD
The price of Bitcoin soared to $34,000 on October 24, 2023. That’s an increase of over 10% for the day and nearly 50% for the week. This is the highest Bitcoin price since early June 2022.
Bitcoin passed 34000 USD, factors in the surge in the price of the crypto-currency
There are several factors that may have contributed to the spike in Bitcoin’s price. One of them is the increase in interest from institutional investors. Another factor is the improving regulatory environment for cryptocurrencies.
Increased investor interest
The increase in interest from institutional investors is one of the most important factors that contributed to the surge in the price of Bitcoin. In recent months, a number of major banks and hedge funds have started investing in Bitcoin. This increases confidence in the market and can lead to higher prices.
Institutional investors who have invested in Bitcoin in recent months:
- Goldman Sachs, one of the world’s largest investment banks, announced in July 2023 that it would begin offering Bitcoin trading services.
- Morgan Stanley, another major investment bank, announced in August 2023 that it would begin offering Bitcoin storage services.
- BlackRock, the world’s largest investment fund, announced in September 2023 that it would begin offering Bitcoin-based investment products.
Favorable regulatory environment
The improvement in the regulatory environment for cryptocurrencies is another factor that may have contributed to the spike in Bitcoin’s price. In recent years, a number of countries have begun to adopt cryptocurrency regulations. This can help reduce risk and make the market more attractive to institutional investors.
Countries that have adopted cryptocurrency regulations
United States: The Biden administration announced in July 2023 that it would create a task force to develop cryptocurrency regulation.
The European Union: The European Parliament passed legislation in July 2023 that will require crypto exchanges in the EU to obtain a license from national regulators.
China: China banned cryptocurrency mining and trading in 2021, but in 2023 began issuing licenses to crypto exchanges.
Favorable those factors
Technical factors may also have contributed to the spike in Bitcoin’s price. Bitcoin is about to break through a key resistance level of $33,000. This could cause prices to rise even more.
Bitcoin Passes 34000 USD, Is That Enough?
Despite the surge in price, Bitcoin is still far from its all-time high of $69,000 reached in November 2021.
And last but not least
It is important to note that cryptocurrencies are highly risky assets. Their prices can fluctuate significantly in the short term. Investors should be aware of these risks before investing in cryptocurrencies. Crashes happen quite often, which bring huge losses of financial means.