Cryptocurrency Rave as Bitcoin Exceeds $60,000 Mark for First Time Since 2022

• Bitcoin investors are currently jubilating as the crypto's value surged to a new height since it started declining in 2022
• The surge is said to be spurred by the recent approval of 11 Bitcoin exchange-traded funds (ETFs) in the US.
• Also, the cryptocurrency market capitalization increased by $122 billion in just one day, reaching $2.25 trillion

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

Bitcoin's price surged above $60,000 late Wednesday, February 28, 2024, marking its highest point in two years.

Data from CoinMarketCap.com indicates that Bitcoin experienced a 7.66% increase, reaching $61,280 at the time of this report, up from $56,917.

This rise comes after a turbulent period in April 2022 when the digital currency plummeted to as low as $19,297 from its previous peak of $68,990 in November 2021.

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Bitcoin's dramatic rise

Over the past week, Bitcoin has witnessed an 18.3% increase, with a remarkable 158% surge over the past year, signalling a bullish trend.

Concurrently, several major altcoins have also seen steady growth in the past 24 hours, exemplified by Ethereum's 3.60% climb to $3,352.90 and Binance Coin (BNB) rising by 5% to $413.70.

The cryptocurrency market capitalization surged by $122 billion in just one day, reaching $2.25 trillion.

Analysts attribute this rapid growth primarily to increased institutional interest, mainly spurred by the recent approval of 11 Bitcoin exchange-traded funds (ETFs) in the United States.

This approval led to a historic daily trading volume of $2.4 billion on February 26, 2024. Additionally, investors eagerly anticipate the upcoming Bitcoin halving event scheduled for April 2024.

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The Bitcoin halving, a process that halves mining rewards, has historically triggered significant bullish movements in the market by reducing the rate of new Bitcoin creation, effectively cutting supply inflation by 50%.

Nigeria's troubled romance with cryptocurrencies

On February 5, 2021, the Central Bank of Nigeria (CBN) issued a directive instructing banks to terminate accounts held by cryptocurrency traders.

The rationale provided by the apex bank cited concerns over the prevalent use of cryptocurrencies in financing terrorism and facilitating money laundering, largely due to the anonymity associated with virtual transactions.

However, marking a significant shift in policy, on December 22, 2023, the CBN reversed its stance, lifting the ban on cryptocurrency transactions.

Additionally, the CBN issued operational guidelines pertaining to virtual assets service providers (VASPs) to all banks and other financial institutions (OFIs).

During the tumultuous phase in the cryptocurrency market dubbed the "crypto winter," Nigerians displayed enduring enthusiasm and curiosity toward Bitcoin, Ethereum, and various other cryptocurrencies.

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Speaking on the matter, Udeme Isong, a cryptocurrency expert and forex trader, told Legit.ng that the surge in Bitcoin's price is multifaceted.

He said:

Institutional adoption, scarcity as only 21 million coins can ever exist, and growing acceptance as a legitimate store of value contribute. Additionally, macroeconomic uncertainties, inflation fears, and concerns about traditional financial systems fuel interest in decentralized assets like Bitcoin.

However, inherent volatility and regulatory uncertainties remain key factors influencing price fluctuations.

He added that understanding these dynamics is crucial for investors navigating the cryptocurrency market, which continues to evolve rapidly amid changing global economic landscapes.

Nigeria mulls blocking Binance over Forex manipulation

In related news, Legit.ng reported that the Nigerian government is contemplating blocking the online platforms of Binance and other cryptocurrency companies

This is to prevent alleged manipulation of the foreign exchange market and illicit financial transfers by users of these platforms.

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CBN faces new headache to keep dollar at N1,000 as Nigeria’s foreign reserves fall to 7-year low

This came as the naira reached an all-time low of N1,815 to a dollar on the black market due to the recent unprecedented depreciation of the Nigerian currency.

According to reports, digital asset platforms are frequently used to manipulate FX values by creating fictitious transactions that either drive value up or down.

Source: Legit.ng