On Thursday, Bitcoin reached its highest level in six months as investors became more optimistic about the economy and less worried about increased regulatory scrutiny.
After a 9.5% increase on Wednesday, the price of the most popular cryptocurrency in the world hit $24,895 on Thursday, its highest point since August 2022. Priced at $24,400 at its last check-in.
In spite of the bankruptcy of major crypto exchange FTX and a sell-off in numerous assets due to global central banks rapidly hiking interest rates in early January, Bitcoin has climbed by about 50% so far this year, from roughly $16,500.
Larger cryptocurrencies have traded similarly to other risky assets, notably stocks during economically difficult periods, with the exception of crypto-specific events like regulatory changes and the fall of big industry participants.
Stock markets around the world climbed on Thursday on the back of encouraging economic data that fueled optimism that the global economy would experience a softer landing than had been feared just a few months ago. This was despite the fact that interest rates look set to remain higher for a longer period of time than had been anticipated.
“After gaining over 8% in the previous 24 hours, Bitcoin blasted beyond $24,000 for the first time in two weeks. Concerns over crypto regulation and the Federal Reserve’s plans to rein in inflation caused the asset’s value to fall below $21,600 in recent days, but those worries seem to have dissipated “Q9 Capital, a crypto investing platform, released a report on Thursday stating as much.
Paxos Trust Company, the company behind leading exchange Binance’s stablecoin, said on Monday that the U.S. Securities and Exchange Commission told the company it should have registered the product as a security and is considering taking action against the platform, marking the latest regulatory challenge for the cryptocurrency industry.