While analysts expect the potential approval of spot bitcoin ETFs to create a much larger pool of crypto investors, future volumes could go either way, Carey added. That could either boost or undermine bitcoin’s value. Bitcoin’s current rally also arrives during an incredibly disruptive period for cryptocurrencies. Just last month, the U.S. government slapping Binance, the world’s largest crypto exchange, with a $4 billion fine as its founder Changpeng Zhao pleaded guilty to a felony charge. But Binance continues to operate and maintain its market share, Carey noted. In some ways, the company’s settlement “propelled the market forward more by removing one of the … more ominous overhangs that was a sort of a big question mark,” he said, noting bitcoin’s gains in the two weeks since the settlement was announced. 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. Last year’s collapse of crypto exchange giant FTX also “left a big scar” on the public’s confidence in the crypto industry and crushed retail investors, Edward Moya, a former senior market analyst at Oanda, previously told The Associated Press — noting that institutional money, like hedge funds, are behind the bulk of current crypto investing.
Bitcoin has surpassed $41,000 for the first time since April 2022. What’s behind the price surge?
