Bitcoin Reaches Its Highest Price Since August, Despite Regulators’ Restrictions

(CTN NEWS) – Bitcoin is rapidly approaching $25,000, its highest level since last summer, driving the market value of all cryptocurrencies up by more than $84.8 billion in just one day.

And this is despite recent industry-related restrictions imposed by US regulators.

Following the exchange of FTX in May and the collapse of TerraUSD, the cryptocurrency market suffered a $1.4 billion value loss. Lawsuits, bankruptcies, and thousands of job losses became widespread. Yet it appears that a thaw is on the way.

In 2023, Bitcoin was worth $16,605. Yet ever since, its cost has been gradually increasing. It crossed $20,000 in mid-January and is now trading at $24,632, up 11% from the previous day, the highest price for Bitcoin since August.

Therefore, Bitcoin has increased by 50% from the year’s beginning.

The New York State Department of Financial Services ordered blockchain and tokenization infrastructure platform Paxos to halt issuing new Binance USD (BUSD), the third-largest stablecoin, on Monday, which is what is most notable about the recent price increase.

The SEC also informed Paxos that it might recommend a course of action alleging that BUSD is a security rather than a commodity, which is governed differently.

The rise in global stock prices, supported by expectations that the Federal Reserve’s increasing interest rates will battle inflation without sparking a US recession, contributes to the increase in cryptocurrency’s value.

According to Vijay Ayyar, vice president of corporate development and international at cryptocurrency exchange Luno,

“the markets like inflation is coming down, interest rate hikes are scheduled to relieve from here, and we may end up with either no big recession or something very mild.”

Analysts’ projections for Bitcoin in 2023 varied. The most gloomy predictions were it would continue to decline and eventually reach $5,000, while a venture investor forecasted a 1,400% increase to conclude the year with a value of $250,000.

However, Carol Alexander, a finance professor at Sussex University, made the one prediction that today appears to be the most likely. According to her, Bitcoin would hit $30,000 in the first quarter before rising to $50,000 in the third or fourth quarters.

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