For the first time since 2021, Bitcoin price returns to $50,000

On February 13, the price of Bitcoin - the world's largest cryptocurrency - returned to the $50,000 trading mark for the first time since December 2021.

Giá Bitcoin trở lại mốc 50.000 USD lần đầu tiên kể từ năm 2021

Bitcoin price returns to $50,000 for the first time since 2021. (Source: Reuters)

The reason for the surge in Bitcoin prices is believed to be the excitement of market participants at the news that US lawmakers will allow the establishment of exchange-traded funds (ETFs) to track the price of Bitcoin, while allowing the public to invest in cryptocurrencies without having to buy them directly.

Bitcoin has now increased by about 25% in value compared to January 22. According to Bloomberg data, on February 13, Bitcoin reached a trading level of $ 50,328 - the highest level since late 2021 and observers are optimistic about this prospect.

While Bitcoin remains well below its 2020 record of nearly $69,000, the rally still represents a strong recovery after a series of scandals and crashes that have rocked the cryptocurrency industry.

FTX — the world’s second-largest cryptocurrency exchange — went bankrupt last year, and its boss Sam Bankman-Fried faces up to 110 years in prison for what prosecutors described as “one of the largest financial frauds in U.S. history.”

In November 2023, Mr. Changpeng "CZ" Zhao also had to resign as CEO of Binance - the world's largest cryptocurrency exchange - after he and the company pleaded guilty to serious money laundering violations.

Bitcoin’s value has also been boosted by predictions that the US Federal Reserve will start cutting interest rates this year as inflation cools, and by an expected supply crunch next year due to the halving event.

Bitcoin mining is the process of using computer power to solve complex mathematical puzzles to receive Bitcoin rewards. However, the number of Bitcoins is limited and every four years, the reward for "Bitcoin miners" is reduced by 50% - also known as the halving event. The next halving will take place next May.

(according to CNBC)

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