Bitcoin’s (BTC) price has risen above $31,000 U.S., its highest level in a year, as the stock market rally continues to lose steam.
The price of Bitcoin rose as high as $31,410 U.S., surpassing its previous 52-week high of $31,013 U.S., before pulling back to around $30,250 U.S.
Bitcoin’s price is now up 82% this year following a slump last autumn in the wake of the collapse of the FTX cryptocurrency exchange.
In early December of last year, Bitcoin was trading below $16,000 U.S.
While this year’s rally has been impressive, Bitcoin’s price remains 50% below its all-time high of $68,789.63. U.S.
The current rally in Bitcoin and other cryptocurrencies such as Ethereum comes as stocks have slumped over the past week, with the rally in equities losing steam.
The benchmark S&P 500 index in the U.S. has declined 2% in the last five trading sessions.
The rally in Bitcoin has also been sparked by expectations that investment company BlackRock (BLK) may gain permission to offer the first U.S. spot Bitcoin exchange-traded fund (ETF).
Investors are also excited by news that a crypto exchange backed by Citadel Securities, Fidelity Digital Assets, and Charles Schwab (SCHW) called “EDX Markets” has gone live.
The gains in Bitcoin also come despite the U.S. Securities and Exchange Commission (SEC) continuing to crackdown on cryptocurrency lenders, exchanges, and issuers of stablecoins, which are digital assets tied to the value of another security such as the U.S. dollar.
