Bitcoin's recent surge came after the Securities and Exchange Commission, by a 3-2 vote, allowed 11 companies to start exchange-traded funds based on bitcoin. Approval of ETFs, which can be traded like stocks, represents a big step toward broader acceptance of Bitcoin, although committee Chairman Gary Gensler remained cautious in announcing the vote: “Bitcoin is primarily a speculative and volatile asset that is also used for non-trading transactions.” “Legitimate.” Activities including ransomware, money laundering, sanctions evasion and terrorist financing.”
The Washington Post reported that the day after the SEC's announcement on January 10, the price of Bitcoin rose to $47,000 per coin.
However, the SEC ruling was a big step toward Bitcoin — once seen as a speculative fad — becoming like any other asset class.
Even before the SEC's decision, Bitcoin had been on the rise since the summer. But like other crypto assets, the price of Bitcoin collapsed in 2022, creating a “crypto winter” that left many companies in the industry reeling and triggered a chain of events that included… Successful criminal prosecutions of huge figures in the cryptocurrency space: Sam Bankman-Fried, founder of cryptocurrency exchange FTX, and his competitor Changpeng Zhao from Binance.
Bitcoin wasn't the only asset to rise on Tuesday. On the other end of the spectrum, gold – typically seen as a place to save money during uncertain economic times – jumped to a record high of $2,145.40 an ounce. Gold hit its last record high on December 4 at $2,135.40 an ounce, according to Reuters.
Julian Mark and Aaron Gregg contributed to this report.
