Cryptocurrency Bitcoin hit a record high of $69,202 on Tuesday. This is the highest price of Bitcoin in the history of 15 years. The previous all-time high of Bitcoin was $68,999.99 in November 2021. The news comes less than two years after a vicious industry-wide crypto meltdown that vaporized billions of dollars. 

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Zee Business managing editor Anil Singhvi has shed some light on possible reasons behind the upward trend in this asset. Check out the details.

What has led to a rise in Bitcoin? 

Investor interest has increased since the Securities and Exchange Commission approved 11 spot bitcoin ETFs in late January. 

According to Singhvi, there are three possible reasons behind this. 

"There are three main reasons behind this rise in this asset. When BlackRock announced that it would launch ETF, Bitcoin was at $25,000 and now it has reached $65,000-$68,000. When ETF was launched in January, it was $44,000 and has surged over $20,000. When an organisation as big as BlackRock validates it, the risk of hacking or forgetting the password becomes negligible," Singhvi said.

Singhvi also said that the only problem with Bitcoin is that it doesn't get any recognition.  

However, Singhvi emphasized that he is not giving any recommendation on Bitcoin but it would be not surprising to see the highest return in this asset (if you consider this an asset).

Bitcoin has a history of drastic swings in price — which can come suddenly and happen over the weekend or overnight in trading that continues at all hours, every day. Bitcoin rocketed from just over $5,000 at the start of the pandemic to its November 2021 peak of nearly $69,000, in a period marked by a surge in demand for technology products. 

Prices crashed during an aggressive series of Federal Reserve rate hikes intended to cool inflation, slow money flows and make risky investments potentially riskier. Then came the 2022 collapse of FTX, which left a significant scar on confidence in crypto.

At the start of last year, a single bitcoin could be had for less than $17,000. Investors, however, began returning in large numbers as inflation started to cool. And 2023’s collapse of prominent tech-focused banks actually led more investors to turn to crypto as they bailed out of positions in Silicon Valley start-ups and other risky bets.

Despite the recent excitement around Bitcoin, experts still maintain that crypto is a risky bet with wildly unpredictable fluctuations in value. In short, investors can lose money as quickly as they make it.

With agency inputs