The attention towards Bitcoin surged immediately after its sudden price spikes in 2013, 2017, and 2021, and in almost all of these instances, a sharp decline followed the rapid ascent. Investors made big bets on Bitcoin every few years and then quickly faced losses. Today, as the price of Bitcoin reached a new peak, it almost immediately dropped by thousands of dollars, demonstrating its extreme volatility.
The current rise in the token can be attributed to one significant reason: it has become legitimate after spot Bitcoin exchange-traded funds (ETFs) received approval from the U.S. Securities and Exchange Commission (SEC) in January. These funds are investment instruments that track the price of Bitcoin, making them more accessible to investors, easier to trade, and better regulated than direct investments in BTC. Like all ETFs, they charge a small fee.
Hedge funds such as Fidelity and BlackRock have come to a positive conclusion about this asset class, legitimizing it and allowing a greater number of people to invest in it.
The value of Bitcoin is also rising for an additional reason: ETFs have quickly become popular, with the top 10 BTC-ETFs seeing inflows of $7.3 billion since their debut.
The iShares Bitcoin fund by BlackRock was earning over $500 million per day in the last three days of February. And Fidelity saw an inflow of $400 million in just one day.
As optimism about this cryptocurrency gains momentum, investors are also starting to buy BTC directly.
Website : https://gold.storage/
Whitepaper: https://gold.storage/wp.pdf
Follow us on social media:
Telegram: https://t.me/digitalgoldcoin
Steemit: https://steemit.com/@digitalgoldcoin