Bitcoin has crossed the $40 000 mark for the first time this year on a wave of general enthusiasm for lower interest rates in the US, and traders expect swift approval of bitcoin funds.
This is reported by Reuters.
The day before, the value of Bitcoin reached $40 210, which is the highest value since April 2022. It was holding steady at $40 011 early in the day in Asia on Monday.
"Weʼll see if it holds through the day, but bitcoin loves breaking big psychological levels, so this gets the bitcoin bugs excited again and adds to the momentum," noted the analyst of “Capital.com” Kyle Rodda.
Bitcoin has more than doubled in a year as it emerged from the lull of the so-called cryptocurrency winter that followed scandals including the collapse of the FTX exchange last year.
Risky investments and other interest rate-sensitive assets such as gold have also rallied strongly over the past few weeks.
However, Bitcoin still remains well below its 2021 record highs of over $60 000.
What is bitcoin
Bitcoin is the worldʼs first and most famous cryptocurrency, or "digital currency", first introduced in 2009.
In fact, bitcoin is a decentralized electronic payment system with a conventional unit of money — bitcoin. “BitCoin” has no centralized management and no issuers. Digitally signed transactions between two addresses are transmitted to all nodes of the peer-to-peer network, and the data about the movement of bitcoins itself is stored in a duplicate database.
It is still unknown who exactly created this cryptocurrency. The formal creator is Satoshi Nakamato. This is apparently the pseudonym of the person or group of people who wrote the first protocols of the future digital currency. The real identity of the creator of bitcoin is still unknown to the general public.
Digital assets have no government regulators and are not backed by gold, another currency, or any precious metal. The price is determined by demand among users. Simply put, a crypto-asset will be worth as much as the audience is ready to offer for it — thatʼs why bitcoin rates are constantly jumping, and the difference is measured not just by thousands, but sometimes by tens of thousands of dollars.