NEW YORK, -- Bitcoin surged to $66,000 on Wednesday. This was due to excitement over how the financial institution is acceptingthe rise of the digital currency.
After climbing to $66,974.77 earlier, one Bitcoin was now worth $66,096, at 4:15 p.m. Eastern. After falling below $30,000 in the summer, the digital currency has rebounded to surpass its previous record of $66,974.77 set in April. CoinDesk reported that the previous record was $64,889.
This surge is due to more businesses, professional investors, and even the government in El Salvador buying Bitcoins, expanding its base beyond its original core of enthusiasts.
On Tuesday, the first exchange traded fund that was linked to Bitcoin received huge interest from investors. ProShares Bitcoin Strategy ETF shares changed hands 24.1 millions times during its debut. Trading volume topped 29.4 millions on Wednesday, making it even busier.
The ETF does not invest in Bitcoin directly. The ETF invests in the futures markets tied to Bitcoin. However, the industry believes the ETF will bring in new investors. An old-fashioned brokerage account is sufficient to purchase the ETF.
Because they are always on the lookout for assets that can move independently from everything else in their portfolios, investors are becoming more interested in Bitcoin. Some believe Bitcoin can provide investors protection against high inflation. Others see it as "digital gold" but it doesn't have a long track history to support that claim.
Digital assets are a more high-minded option for finance. They allow transactions to bypass middlemen and fees, while a currency is not bound to any government.
China declared Bitcoin transactions illegal last month. The U.S. Securities and Exchange Commission chair has stated that crypto investors don't have sufficient protections.
The price swings that cryptocurrencies can make are well-known. Bitcoin's record-setting price was broken in December 2017. The price fell by half within three months.
According to Gil Luria (technology strategist at D.A.), one of the main reasons for this volatility is the wide range of possible futures for Bitcoin. Davidson.
Bitcoin could be worthless if it becomes a fad, or if another cryptocurrency takes its place. It could also take over the U.S. dollars and other currencies, and "all of it" and replace them.
Luria stated that he only sees a 1% chance of the "all-of-money" scenario, but it's better than what he saw five year ago.
He said, "To make all of the money, you need to get lots of people onboard." As Bitcoin has become mainstream and hit new heights, many people have joined Bitcoin in the past year.
He said that the higher Bitcoin goes, the more it becomes a self-fulfilling prophecy.