Bitcoin, the leading cryptocurrency player, surpassed USD 24,000 on the 15th (local time), the highest level in six months.
According to CoinDesk, a virtual currency information site, the price per bitcoin jumped 11.63% from 24 hours ago to USD 24,690 at 11:40 p.m. on the same day.
This is the highest in more than six months since August 13 last year, when it was close to $24,500.
Ethereum, the second-largest market capitalization, also traded at USD 1,692, up 9.18%.
Bitcoin moved around USD 23,000 a week ago, but on the 13th, it fell to USD 21,000 due to concerns over the U.S. authorities’ tightening of regulations on the virtual currency industry.
In fact, the New York State Department of Financial Services ordered Paxos, a stable coin issuer, to stop issuing Binance Stable Coin (BUSD) on the 13th. As a result, there were concerns that another coin issuer circle is also facing regulations.
However, Bitcoin has jumped more than 10% in two days, surpassed USD 24,000 at once, rising and falling in the USD 24,700 range.
Bloomberg analyzed that the upward rally came as investors shook off concerns about tightening U.S. authorities’ regulations.
Henry Elder, head of decentralized finance at cryptocurrency asset management firm Wave Financial, explained, “Today’s surge seems to be due to investors’ realization that regulators are basically not going to kill the circle.”
CoinDesk also diagnosed that investors’ anxiety over the U.S. economic outlook and the Fed’s monetary policy stance has somewhat reduced due to the U.S. Consumer Price Index (CPI) announcement in January.
At the same time, there was an analysis that investors who bet on the decline in virtual currency surged as they bought a large number of Bitcoin due to rising prices.
CoinDesk analyzed, “The surge is the highest increase since September 9 last year when it rose 10.5%,” adding, “This is the result of the ‘short squeeze’ type that has historically raised prices.”
“Short Squeeze” refers to the act of short-selling investors who borrowed and sold stocks in anticipation of a fall in stock prices to purchase the stocks to prevent greater losses if the stock price rises contrary to expectations.
Bloomberg, however, pointed out that investors’ overly complacent thoughts on high interest rates could be a risk factor in the global market at a time when a long-term tightening stance could lead to a decline in asset demand.
Bitcoin price surpassed USD 47,000 in March last year, then plunged to USD 30,000 in May, and fell below USD 25,000 in June. In November last year, the USD 16,000 level collapsed due to the liquidity crisis of the virtual currency exchange FTX.