After months of dormancy, Bitcoin is back on the rise, touching $24.867 in February. This is a value the cryptocurrency has not seen since mid-August.
Cryptocurrencies and Bitcoin on the rise
It was not so long ago that in the wake of the FTX scandal the cryptocurrency market suffered a major meltdown, causing most of the cryptocurrencies in circulation to lose value.
In recent months, many investors have liquidated their cryptocurrency holdings such as Bitcoin and Ethereum, a liquidation that has caused cryptocurrencies to lose even more value.
In the specific case of Bitcoin, the most popular and powerful cryptocurrency in circulation, last November saw a collapse in its value from about 21,000 euros to about 15,000 euros.
Bitcoin reached the highest value mid-february
A value that then remained stable around that figure until a few weeks ago, when, the cryptocurrency began to rise in value again until it reached its peak last Feb. 15, when the cryptocurrency reached a record high value of $24,867, or about €22,800.
This is the highest value recorded by the cryptocurrency in the past six months, to be more precise, the highest value since mid-August 2022.
The increases in cryptocurrency value, resulting from a sharp rise in demand, is not confined only to Bitcoin. Which saw an increase of more than 11 percent in 24 hours between Feb. 15 and 16, 2023. And more generally, a 16 percent increase since the beginning of February. But it has involved most of the most sought-after cryptocurrencies.
Specifically, Ethereum, over the same period saw an increase in value of about 9%, rising about €1.432 to about €1562. And in the same vein was Solana, which gained about 10% to €22.19.
What caused the increases?
It is unclear what prompted the increase in demand, and the resulting rise in the value of cryptocurrencies. Many analysts believe that there is no clear catalyst to explain this increase. While others believe it is related to better inflation and employment data in the US.
Many analysts are of the view that the fate of cryptocurrencies, particularly Bitcoin and Ethereum has become almost inextricably linked to the Fed’s interest rates.
Other analysts believe, however, that playing a central role in the affair was the recent episode involving the stablecoin Binance USD. Which may soon be sued by the U.S. Securities and Exchange Commission.