Bitcoin has surged to $41 000, marking its first significant rise since April 2022 and signalling a strong rebound in the cryptocurrency market.
Bitcoin price recovery: Here’s what’s behind the 152% jump in 2023
The largest digital asset has experienced a remarkable recovery in 2023. It recently topped $41,000, showing an impressive 5.1% increase to reach $41 746.
This surge represents a 152% jump in 2023, bringing Bitcoin back to levels last seen in April 2022, before the TerraUSD stablecoin collapse led to a $2 trillion rout in digital assets.
The positive trend wasn’t limited to Bitcoin. Smaller tokens like Ether and the popular meme-crowd favourite Dogecoin also saw significant gains. A gauge of the largest 100 crypto coins rose more than 4%, indicating a broader recovery in the cryptocurrency market.
As reported by Bloomberg, investors are growing increasingly optimistic about the Federal Reserve halting rate hikes as inflation cools down. This change in monetary policy expectations has fuelled rallies across global markets, benefiting cryptocurrencies.
Furthermore, the crypto industry is eagerly anticipating the outcome of applications from companies like BlackRock Inc. to launch the first US spot Bitcoin ETFs, with Bloomberg Intelligence predicting approval by the Securities & Exchange Commission by January.
How digital assets are adopting growth in Africa
The Financial Sector Conduct Authority (FSCA) recently found that Africa is one of the fastest-growing crypto markets globally, albeit still the smallest.
The continent’s crypto transactions peaked at $20 billion per month in mid-2021. Countries like Kenya, Nigeria, and South Africa lead in user numbers.
In South Africa, a 2022 study by Triple A indicated that over 5.8 million people, or 9.44% of the population, currently own crypto assets, with predictions of 43% adoption by 2030.
The rise in crypto assets has posed significant challenges for governments and regulators, particularly in how to regulate the decentralized and globally-reaching crypto asset ecosystem.
Key concerns include jurisdiction issues, integrating Crypto-Asset Service Providers (CASPs) into existing financial sector laws, and addressing risks like money laundering, investor protection from scams, and potential financial stability issues.
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