After having fallen quite drastically, the price of Bitcoin shot high again. The latest data says the price of 1 of the most popular crypto currencies is in the range of almost USD 55 thousand. What was the trigger?
In fact, the price increase brought Bitcoin's market capitalization close to USD 1 trillion, matching the market value of Facebook, the world's largest social media.
Not only Bitcoin, other crypto currencies also experienced a significant increase. Ethereum (ether), Binance Coin, Solana (SOL), Ripple (XRP) to Dogecoin have all gained between 15 and 30% since the start of October.
The price of this latest Bitcoin is actually still less than USD 10 thousand from its highest value of USD 64 thousand, which was reached in mid-April 2021. After that, the price continued to rise and fall.
One of the causes of the decline was for example the Chinese government's decision to conduct a large-scale raid on cryptocurrency mining. Even recently, they banned all kinds of transactions using cryptocurrencies including Bitcoin.
"This kind of news usually causes a short-term pullback in the market but has little impact on its fundamentals in the medium to long term," said Jonas Luethy, trader at GlobalBlock.
Well, the current Bitcoin price rebound was triggered by an announcement from the Swiss financial regulator, which for the first time approved the investment of cryptocurrencies in the country because it was considered to trigger technological innovation.
Simon Peters, analyst at online trading platform eToro, called the announcement a breath of fresh air for investors. "Because Switzerland has the largest banking sector in the world and accounts for about 25% of global asset management, the opportunities for investors in these crypto assets can be attractive," he said.
