Bitcoin has surpassed the $60,000 mark for the first time since 2021, experiencing a surge that has catapulted the world's largest cryptocurrency close to its all-time high.
The price of Bitcoin soared by 12.6% to reach $63,968 on Wednesday before retracing to approximately $60,000. This rally has translated to a 42% increase in the cryptocurrency's value during the first two months of the year.
This rapid rise has rekindled memories of the crypto bull market that drove Bitcoin to its record high of nearly $69,000 in November 2021, with investors rushing in amid the fear of missing out on further price gains.
Timo Lehes, co-founder of blockchain company Swarm, described the situation as "insane" and anticipated an influx of capital into Bitcoin. He explained that such rapid price increases attract more people, triggering the fear of missing out.
Some experts caution against excessive optimism, with concerns about the potential negative impact of a renewed boom-bust cycle in Bitcoin. They argue that the current price of the token is not a reliable indicator of its long-term viability.
Despite these warnings, the cryptocurrency industry has been bolstered by a perception that it is moving past the scandals of recent years. In November, the Securities and Exchange Commission imposed a record $4.3 billion fine on Binance, the world's largest crypto exchange, for various offences including failure to prevent money laundering and breaching international sanctions.
Meanwhile, FTX, a major competitor to Binance, faced a collapse in 2022, and its founder Sam Bankman-Fried was recently found guilty on seven charges of fraud and money laundering. His legal team is currently seeking a shorter prison sentence for him, arguing against the 100-year term he could potentially receive.
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