Bitcoin, the notorious digital currency, surpassed a notable benchmark reaching over AU$100,000, sparking celebration within the cryptocurrency arena. Analysts predict that the cryptocurrency’s value might shatter its previous record of US$67,000 (AU$102,900 per the existing exchange rate) and ascend to record peaks this week, driven by its current uptrend. Yesterday, Bitcoin witnessed a surge in Australia, soaring to an all-time high of AU$99,800, before exceeding AU$100,000 at 1 pm AEDT. The currency, referred to as ‘digital gold’, peaked at US$69,000 (AU$92,400 due to the exchange rate) in November 2021 amid a robust bull run, leaving it just 2 percent shy of its record high. As of now, Bitcoin’s market capitalization stands at US$1.33 trillion.
The recent increase has fueled optimism among enthusiasts given the cryptocurrency’s year-long dip in prices between November 2021 to November 2022 and the controversy causing a crisis of confidence following the collapse of crypto exchange FTX. Binance Australia’s General Manager, Ben Rose, believes that Bitcoin’s new AUD high reveals a growing acceptance and optimism for the sector. He adds that accessibility to crypto investing has improved significantly due to Exchange Traded Funds (ETFs).
Pav Hundal, a lead analyst at Swyftx, thinks that the crypto market is showing signs of exuberance similar to what was witnessed in 2020. He attributes the rise in Bitcoin’s value to the institutional demand which is also driving the overall crypto market. Caroline Bowler, CEO of BTC Markets, underlines the increasing acceptance of cryptocurrency in the traditional finance landscape, citing the escalating integration of cryptocurrency into mainstream financial institutions and recent US regulation developments regarding Bitcoin ETFs.
However, the rise in Bitcoin’s value is also raising caution. The anticipated Halving event in April, a phenomenon that occurs approximately every four years where Bitcoin mining rewards are halved, could lead to volatility. Investors should exercise due diligence and carry out thorough independent research before investing in this volatile asset. Despite the possible perils, the crossing of the AU$100,000 mark is undoubtedly a significant milestone worth celebrating for Bitcoin investors.
