The Bitcoin (BTC) rate rose above $50 thousand on the Binance exchange, RBC reports. The rate was approximately the same in 2021, but then BTC began to fall in price sharply
Bitcoin reached a peak value of $50,314 this evening, but by the time this note was published, the price of the main cryptocurrency had dropped slightly, to approximately $49,902, according to CoinDesk.
While Bitcoin ETFs have raked in billions of dollars in their first weeks of trading since launching on January 11, investors’ attention has been focused on the outflow of billions of dollars from the high-yield Grayscale Bitcoin Trust (GBTC). Against this backdrop, the price of Bitcoin fell to $38,500 just a few days after the ETF launched. However, outflows from GBTC have slowed over the past couple of weeks, while strong inflows into new funds have continued.
In addition, the growth of Bitcoin is explained by the fact that it will soon become more difficult to mine. Around April, Bitcoin halving will occur – this is a mechanism to protect cryptocurrency from inflation, which implies a reduction in the reward for mining a block by half.
In 2021, analysts already predicted an increase in the price of the most expensive cryptocurrency in the world to $50 thousand. Then the increase in price occurred against the backdrop of the acquisition of BTC by Tesla for $1.5 billion.