On video: Power plant restarted to mine Bitcoin/Angular
The value of Bitcoin crosses the $50,000 mark for a single currency: The digital currency completes a week of strong gains with a value not recorded since December 2021, which puts its market value at a fraction of a trillion dollars.
This means that those who purchased Bitcoin about 3 weeks ago benefited from a 25% increase in value.
Bitcoin's all-time high point was recorded in November 2021, when its price was 69 thousand dollars.
The volume of investments in the field of digital assets has soared in recent months, led by Bitcoin, following the recent recovery in the crypto market and the launch of Bitcoin-tracking basket funds that have poured billions of dollars into the market.
Despite the ever-increasing demand, the number of new bitcoins created by the protocol remains unchanged according to the rules defined in the code in advance, and cannot be changed.
This means an imbalance between supply and demand, which is manifested in the increase in the price of the currency until a balance is reached between buyers and sellers.
Bitcoin.
At its peak it was 69 thousand dollars per coin/ShutterStock
Bitcoin mining difficulty is increasing
Bitcoin mining difficulty has increased by 100% in the last year.
This means that the overall computing power currently invested in the Bitcoin network has doubled.
This makes it harder for inefficient miners to compete, and increases efficiency and innovation in the field.
The increasing difficulty of Bitcoin mining is considered a sign of the health of the network, as more secure and reliable.
Yesterday evening (Monday) Bitcoin traded at a two-year high when it reached a price of 50,377 dollars.
As of writing these words, Bitcoin is trading at a price of $49,940.
The sharp increases in the leading currency, which almost always dictates the trend in the market as a whole, spill over to other alternative currencies as well.
The second largest currency, Ethereum (ETH), touched the price of $2,682 yesterday, and is currently trading at $2,666.
Avalanche (AVAX) and Solana (SOL) are also completing increases of 21% and 20% respectively in the last week alone.
According to the CoinMarketCap website, the value of the crypto market as a whole stands at $1.87 trillion, after a weekly increase of about 4.53%.
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Bitcoin.
Avalanche and Solana also complete an increase of 21% and 20% respectively in just the last week/ShutterStock
Shortly after the launch of Bitcoin ETFs, which allow investing in the currency without actually buying it but through the easy purchase of an ETF, a sharp price drop of several days began, during which the digital currency plunged from a price of $49,000 to less than $40,000 within a few days .
In the first days after the launch of the basket funds, significant sales of Bitcoin coins began, mainly coming from the largest holder - Grayscale (GBTC).
The significant sales in those days, created great pressure and caused the price of Bitcoin to fall.
In recent weeks, there has been a relaxation in the amount of coins sold from the GBTC fund, and thus the balance between the funds becomes positive, meaning that those who buy, buy more than the amount sold by GBTC, and this is one of the reasons for the price increase during this period.
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Bitcoin
Crypto
ETFs
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