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Bitcoin surpasses 60000 close to its all time high

Bitcoin hits new all-time high above $69,000

Business News / Ashley Cornell, email: [email protected]

Bitcoin hit a new all-time high on Tuesday, fueled by excitement in the cryptocurrency sector since a new, more widely available form of investment was approved in the American market.

• Also read: Bitcoin surpasses $60,000, close to its all-time high

• Also read: Cryptocurrency fraudster finally in prison after a long time

The cryptocurrency star rose to $69,191.94, surpassing its previous high of $68,991 in November 2021.

“The price of Bitcoin has reached new heights” and continues to rise, notes Tickmill analyst James Harte, who believes investors remain decidedly optimistic about “the prospects for a rise.”

The first of the cryptocurrencies by capitalization, which so far is worth more than 1,300 billion dollars, according to the website Coingecko, has been on a crazy ride for several months.

Its price has risen by more than 50% since the beginning of the year alone and has tripled in the past year, a spectacular increase after the price collapse following the collapse of several industry giants at the end of 2022.

After its previous high, Bitcoin collapsed to around $15,000 in November 2022 following the bankruptcy of the FTX exchange platform, until then a flagship company in the industry.

His then-boss, Sam Bankman-Fried, was accused, along with other executives, of using client accounts without their knowledge to fuel the speculative trades of his own investment company.

Regulators, still struggling to effectively regulate cryptoassets, regularly warn against the illusion of huge profits, which can entice buyers to place large bets and incur large losses or fall into the trap of fraudulent schemes.

In 2017, a previous cycle of frenzied enthusiasm was already followed by a price collapse.

“Buying as prices rise is rarely a good idea,” says AJ Bell’s Laith Khalaf. “Previous episodes have shown that those who get in when the frenzy is at its peak suffer extreme losses,” the analyst recalls.

Buying fever

For several months, the price of Bitcoin has been supported by the expectation of the approval of a new investment product in the American markets, a Bitcoin-indexed investment fund (ETF), which will allow a larger part of the public to invest in these cryptoassets without holding them directly .

The introduction of this investment in the United States initially triggered a wave of massive outflows, particularly among investors in the GBTC (Grayscale Bitcoin Trust) fund, who wanted to lock in their profits once this fund was converted into an ETF.

The trend has now reversed. Since their launch, funds of this type, such as that of the world's largest asset manager BlackRock, have “accrued assets representing more than 3% of all Bitcoins in existence,” notes Simon Peters, analyst at eToro, in an interview with AFP.

Reduced offer

The industry also sees this approval as evidence of the growing interest of institutional investors in cryptocurrencies, which further increases enthusiasm for Bitcoin.

Finally, another upcoming event supports prices: the “halving”, a technical phenomenon that consists of halving the Bitcoin reward given to Bitcoin “miners” – those who validate transactions to create the blockchain contribute.

The “halving” occurs every 210,000 blocks – or groups of transactions verified and included in the “blockchain” – which is approximately every four years. The next one is currently scheduled for April.

By reducing the amount of Bitcoins available for purchase, this phenomenon should therefore strengthen the value of Bitcoins, notes Charles Morris, analyst at ByteTree.

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Bitcoin briefly hits an all-time high, less than two years after the FTX scandal rocked cryptocurrencies

Business News / Ashley Cornell, email: [email protected]

NEW YORK — NEW YORK (AP) — Bitcoin has hit an all-time high less than two years after the collapse of crypto exchange FTX severely damaged confidence in digital currencies and sent prices plummeting.

The world's largest cryptocurrency is up 4% this week and briefly topped $68,800 on Tuesday, according to CoinMarketCap. This is just above the previous Bitcoin record from November 2021.

The volatile asset soon fell somewhat, trading at just under $62,000 as of 3 p.m. ET, but the price is still more than 175% higher than a year ago.

The gains in recent months were fueled by the anticipation and eventual U.S. approval of Bitcoin exchange-traded funds earlier this year, giving access to a much broader range of investors. The price of Bitcoin has risen about 60% since Bitcoin ETFs were approved in January. This is an easy way to invest in assets or a group of assets – such as gold, junk bonds or Bitcoins – without having to directly purchase the assets themselves.

Another driver for prices is the so-called Bitcoin halving, which is expected in April. Halvings reduce the speed at which new coins are mined and created, thereby reducing supply.

Here's what you need to know:

EARLY SUCCESS OF BITCOIN SPOT ETFS

In January, the US Securities and Exchange Commission approved the first spot Bitcoin ETFs from asset managers such as Blackrock, Invesco and Fidelity. These newly approved ETFs hold real Bitcoin – unlike previous Bitcoin-related ETFs, which were invested in contracts related to future price bets, but not the cryptocurrency itself.

While regulators have highlighted the ongoing risks and maintained their reluctance over the January decision, the green light marked a major victory for the crypto industry.

Institutional demand for Bitcoin shows “no signs of slowing,” HC Wainwright’s Mike Colonnese and Dylan Scales wrote on Tuesday, adding that Bitcoin’s popularity “is likely to increase in the coming months as more asset management platforms adopt spot (Bitcoin- )Make ETFs accessible to your customers.”

Using data from crypto platform BitMEX, Colonnese and Scales estimated that the 10 Bitcoin ETFs recorded an average of $302 million in daily net inflows in February. Last week alone, these spot ETFs saw record inflows of $1.7 billion – bringing total net inflows of $7.5 billion since their launch on January 11th.

Halving on the horizon

The increased demand also coincides with Bitcoin's next halving, expected at the end of April.

The Bitcoin halving, which occurs every four years, involves halving the reward for Bitcoin mining. This reduces the speed at which new coins are created, making supply more scarce.

While analysts say limited supply during times of high demand can drive Bitcoin prices higher over time, others point to the significant volatility that occurred before and after the halving events – and the possibility of significant declines.

“History may not be a reliable guide to predict how Bitcoin's upcoming halving will affect its value,” noted Rajeev Bamra, senior vice president of digital finance at Moody's Investors Service. “Various external factors, changes in market sentiment and regulatory developments can influence the development of the Bitcoin price.”

A HISTORY OF VOLATILITY

Bitcoin has a history of experiencing drastic fluctuations in value, which can occur suddenly and occur on weekends or overnight when trading takes place 24 hours a day, every day.

Bitcoin rose from just over $5,000 at the start of the pandemic to its peak of nearly $69,000 in November 2021, at a time marked by a surge in demand for technology products. Prices plunged during an aggressive series of interest rate hikes by the Federal Reserve aimed at cooling inflation, slowing the flow of money and making risky investments potentially riskier. Then came the FTX collapse in 2022, which significantly undermined confidence in cryptocurrencies.

At the beginning of last year, a single Bitcoin could be had for less than $17,000. However, as inflation began to cool, investors returned in large numbers. And the collapse of prominent tech-focused banks in 2023 actually led to more investors turning to cryptocurrency as they exited positions in Silicon Valley startups and other risky bets.

Despite the recent excitement surrounding Bitcoin, experts still believe that cryptocurrencies are a risky bet with completely unpredictable fluctuations in value. In short, investors can lose money just as quickly as they make it.

“It is important to exercise caution and recognize that the future of the digital financial ecosystem, particularly crypto markets, is likely to experience a period of volatility,” Bamra noted, noting the importance of “cautious optimism.”

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Lindt will continue to increase its prices in view of rising cocoa prices

Business News / Ashley Cornell, email: [email protected]

Swiss chocolatier Lindt & Sprüngli will raise its prices again in 2024 and 2025 to cope with the rise in cocoa prices, after assets have already risen by an average of 10.1% in 2023.

• Also read: [PHOTOS] In a remote Scottish town, a chocolatier is chosen for the Oscars

The group, which released its annual results on Tuesday, saw bills for its raw materials skyrocket with cocoa prices. They are at their peak due to a production deficit due to heavy rains that damaged crops and a pod disease.

At the end of February, a ton of cocoa exceeded US$6,500 in New York, an increase of more than 150% since January 2023, and reached almost 6,000 pounds sterling in London, an increase of more than 170% since the beginning of last year.

The chocolatier therefore warned that it would have to negotiate further price increases in 2024 and 2025 “if cocoa prices remain at this level”.

For 2024, the group is aiming for a “mid-single-digit” increase of around 5%, explained managing director Adalbert Lechner at a press conference.

According to calculations by Patrik Schwendimann, an analyst at Zürcher Kantonalbank, the group would have to increase its prices by “around 12 percent” by 2025 if prices remain at this level, “which brings with it the risk of volume pressure.”

“We hope that the increase will be significantly lower,” said the head of Lindt & Sprüngli, without confirming this estimate. The group wants to remain “cautious” about price increases because “we know consumers are sensitive to them,” he insisted.

For 2025, “we have to monitor the development of cocoa prices” and make a decision “by the middle of the year,” he said.

In 2023, the Swiss chocolatier posted a better-than-expected net profit, rising 17.9% year-on-year to 698.5 million euros, thanks in particular to a lower tax burden. The country also benefited from the revival of tourism as its chocolates were often sold in duty-free shops at the airport.

In 2023, “consumers have tightened their belts,” Mr. Lechner acknowledged, but the so-called “premium” segment, which corresponds to the high-end share of chocolate sold in supermarkets, “has held up well,” he said insists.

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The Biden administration is finalizing rules to reduce late fees on credit cards

Business News / Ashley Cornell, email: [email protected]

This move is expected to reduce the typical late fee for credit card payments from $32 to $8.

March 5, 2024, 3:42 p.m. ET

• 7 min reading

President Joe Biden on Tuesday touted his administration's recent efforts to reduce late credit card payment fees, which is estimated to save families $10 billion each year.

The Consumer Financial Protection Bureau approved a rule Tuesday that lowers the typical late fee for credit card payments from $32 to $8.

“That’s an average annual savings of $220 for more than 45 million Americans who normally pay late fees. A lot of money,” Biden said at a meeting with his competition council.

“We estimate that banks are incurring five times more late payments than it costs to collect late payments. They increase their profit margins,” he said.

“Today’s ruling ends the era of large credit card companies hiding behind the excuse of inflation as they raise fees for borrowers and boost their own profits,” CFPB Director Rohit Chopra said in a statement.

President Joe Biden speaks with members of the media before boarding Marine One on the South Lawn of the White House in Washington to travel to Camp David, Maryland, for the weekend, Friday, March 1, 2024.Andrew Harnik/ AP

The agency said its new rule closes a loophole in a federal law called the CARD Act that allows major credit card issuers to charge customers increasing fees if they default on their payments. Over time, these late fees increased to as much as $41. The new rule would cap it at $8.

It would also prevent card issuers from automatically increasing fees based on inflation.

Industry groups representing major banks and credit card issuers have opposed the rule, arguing it could force them to raise the interest rates they charge consumers.

“The policy goals of the rule are, at best, consumer redistribution, not consumer protection,” the Consumer Bankers Association, which represents banks and credit card issuers, said in a statement.

“Today’s flawed final rule will not only reduce competition and increase the cost of credit, but will also lead to more delinquencies, higher debt, lower credit scores and reduced access to credit for those who need it most,” said President and CEO of American Bankers Association said Rob Nichols in a statement. “The Bureau’s misguided decision to cap late credit card payment fees at levels well below banks’ true costs will force card issuers to slash credit lines, tighten standards for new accounts and APRs for all to increase consumers – even for those who pay on time.”

The CFPB's rule is expected to take effect in mid-May. It applies to issuers with more than 1 million open accounts.

President Joe Biden meets Italian Prime Minister Giorgia Meloni in the Oval Office of the White House in Washington, Friday, March 1, 2024.Evan Vucci/AP

Biden administration officials said “a handful of large banks” were responsible for $14 billion in credit card late fees charged to American households each year.

Biden highlighted the rule along with a handful of other measures he is taking to try to cut costs and sell his economic policies as beneficial to Americans ahead of the November election.

He pointed to a new report from the Council of Economic Advisers that says the government's actions on “junk fees” alone will save Americans more than $20 billion each year.

He has also announced the launch of a new “strike force” to crack down on unfair and illegal practices that drive up prices.

The “Strike Force” will target conduct that drives up prices for Americans through “anti-competitive, unfair, deceptive or deceptive business practices,” targeting areas such as “prescription drugs and health care, food and grocery, housing and financial services ” focus .”

The Competition Council also announced efforts to crack down on poultry and meat processors by announcing a final new rule to protect farmers and ranchers and promote competitive agricultural markets.

In this file photo, President Joe Biden and Lael Brainard, assistant to the president and director of the National Economic Council, participate in a discussion about protecting consumers from hidden junk fees with business leaders at the Eisenhower Executive Office Building near the White House. in Washington, DC, USA, June 15, 2023.Sarah Silbiger/Portal

Another area they're looking at is “bulk billing” by internet providers, particularly highlighting a proposed Federal Communications Commission rule that would ban the practice of even charging landlords to everyone who lives or works in a building Charge you for a particular internet, cable or satellite service if you don't want it or haven't agreed to it.

This decision to highlight these efforts to save Americans money comes two days before Biden delivers his State of the Union address, in which he is expected to outline the work his administration has done to reduce everyday costs for Americans .

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The Monroeville Convention Center will remain open, local leaders announce

Business News / Ashley Cornell, email: [email protected]

MONROEVILLE, Pa. (KDKA) – The Monroeville Convention Center will remain open, a coalition of world leaders announced Tuesday.

Monroeville officials said they were blindsided by news last month that the convention center would close in June and be converted into a Hobby Lobby. After learning of the closure, officials said they would work to communicate to Hobby Lobby and the Oxford Development Company how important the convention center was to the community, and the two companies agreed it was best to seek termination of the Hobby Lobby lease.

“We want to thank Hobby Lobby and Oxford for their sincere efforts to achieve a positive outcome,” Monroeville Mayor Nick Gresock said in a video.

The state, county and township are working on a transition plan that leaders say will result in the convention center operating as a “long-term community asset under either a new township- or government-based ownership structure or a state-backed lease.”

Several elected leaders, including Lieutenant Governor Austin Davis, Allegheny County Executive Sara Innamorato, Senator Jim Brewster and Senator Jay Costa, released a joint statement saying:

“The Monroeville Convention Center is saved! We are pleased to announce that the MCC will continue to welcome tens of thousands of visitors each year, support hundreds of local jobs and generate millions in economic activity.”

“Today’s announcement is the result of several weeks of discussions, including information sharing about the major impact of the MCC. We would like to thank Hobby Lobby and Oxford for their sincere efforts to achieve a positive outcome. Everyone at the table has been working behind the scenes to achieve an outcome that will result in the MCC becoming a properly owned and financed community asset.”

Monroeville officials say they will begin reaching out to vendors for shows and events previously scheduled for June 1 and beyond in hopes of bringing them back to the convention center as planned.

The public outcry was so great that other venues came to the rescue. 247 Fighting Championships offered its 27,000 square foot space when it becomes available this summer. KDKA-TV's Shelley Bortz met with the owner again when the news broke.

“At least ten companies have come forward like Instant. It was very clear that there was a need and that there was a struggle for a lot of people,” Hunter Homistek said.

“My first reaction was just that I was really happy for the people who were initially affected so badly by this,” he added.

More from CBS News

Madeline Bartos

Madeline is a digital web producer for KDKA. She has been working for the station since 2019.

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China may need to resort to tried-and-tested tactics to advance its “new leap forward.”

Business News / Ashley Cornell, email: [email protected]

A Chinese flag flies high above the Bund.

Liu Liqun | Corbis documentary | Getty Images

Faced with a higher base effect, even the Chinese government admitted that hitting this year's target “will not be easy” – especially as the world's second-largest economy continues to grapple with a host of problems, from overcapacity and easing price pressures to to a weakening real estate market and debt crisis.

“The 5% GDP target is really ambitious. Even last year, it was the opening year of Covid and China achieved 5.2% (growth), mainly due to the recovery in consumption,” said Wang Dan, chief economist at Hang Seng Bank (China). said CNBC on Tuesday.

“This year we will not reopen and that means it will be very difficult for China to actually reach the 5% unless there is a huge infrastructure project. [target],” She said.

“When it comes to actual spending, the fiscal deficit this year is only 3%. If we think about it, GDP growth will be around 5% – if the government target is met – and that means household spending as a percentage of GDP will actually shrink.”

While the labor report is light on details, it appears to suggest that Beijing is refraining from the aggressive, bazooka-like stimulus measures that some market observers had expected.

“Mostly it is a contractionary fiscal policy rather than an expansionary one, so I think there needs to be a project comparable in size and quality to the Three Gorges Dam to really boost domestic demand,” Wang added added.

The Three Gorges Dam is a hydroelectric project across the Yangtze River that was first approved in the early 1990s but did not become fully operational until 2015.

China has historically resorted to infrastructure development as a short-term solution to boost growth, particularly after the 2008/2009 financial crisis.

Starting this year and “over the next few years,” Beijing said it would issue 1 trillion yuan ($138.9 billion) of “ultra-long” special government bonds in 2024 to finance major projects in line with national strategies.

According to Erica Tan, an economist at, these bonds do not contribute to the budget deficit and have only been issued three times before, namely during the Asian financial crisis in 1998, to capitalize the China Investment Corporation in 2007 and during the Covid-19 crisis in 2020 Maybank.

Economists at Goldman Sachs said that promise was the “key positive surprise” from this year's government jobs report.

Premier Li Qiang also said 3.9 trillion yuan worth of dedicated local government bonds will also be issued this year, 100 billion yuan more than last year.

China's real estate problems are closely linked to the finances of local governments, as they have historically relied on land sales to developers for a significant portion of their revenue.

The real estate market slumped after Beijing cracked down on developers' heavy reliance on debt for growth in 2020 – driving some of its biggest real estate companies into bankruptcy and weighing on consumer confidence and overall economic growth.

“So far, the real estate market is still contracting and the hope of a real estate market recovery has all but disappeared, leaving us with only production and infrastructure,” said Wang of Hang Seng Bank (China).

Infrastructure development is at the heart of one of the government's ten key work tasks in this year's work report, which commits to promoting integrated development between rural and urban areas.

China's ultimate goal is a promise to “modernize the industrial system and develop new high-quality productive forces more quickly” – underscoring the strong emphasis on strengthening Beijing's industrial capability as a longer-term growth engine.

“We should give full play to the leading role of innovation, advance industrial innovation through innovation in science and technology, and push forward the new industrialization to increase total factor productivity, steadily promote new growth drivers and strengths, and promote a new leap forward in the productive forces,” Premier Li said, according to an official translation in the work report.

Chinese Premier Li Qiang delivers a speech during the opening of the second session of the 14th National People's Congress at the Great Hall of the People on March 5, 2024 in Beijing, China.

Lintao Zhang | Getty Images News | Getty Images

Specific industries mentioned include artificial intelligence, new energy vehicles, hydrogen propulsion, biomanufacturing, commercial space travel, new materials and innovative medicines.

“Our aggressive focus on achieving industrial performance shows that leadership will continue to pour credit and other resources into expanding advanced manufacturing capabilities,” Maybank's Tan said.

“While this is driven by their desire for economic security, this move will be closely watched by countries wary of export competition from cheaper Chinese products.”

China may need to resort to tried-and-tested tactics to advance its “new leap forward.” Read More »

Cessation of work on the canoe project: No impact on the schedule, assures the project sponsor

Business News / Ashley Cornell, email: [email protected]

The decision to suspend work for a month at the site where one of Montreal's largest social housing projects is planned was made by the developer who wants to “finalize” its financial package, the Mercier district said on Tuesday. –Hochelaga-Maisonneuve.

• Also read: A district is forcing a halt to work on a large public housing project in Montreal

On Monday, Le Journal revealed that work at the Canoë project site on Hochelaga Street was suspended for more than a month after the municipality ordered the work to stop.

“In view of the start of the foundation and structural work, the district ordered the construction site to be stopped,” he then explained, also pointing out that the developer had requested a delay before issuing a building permit.

However, the district provided incomplete information explaining the situation yesterday, despite multiple requests from the Journal.

Mayor Pierre Lessard-Blais' office, which declined our request for an interview on Monday, actually wanted to provide details on Tuesday morning.

“The developer asked the municipality to temporarily withhold the issuance of the permit to allow it to complete its financial package and bring together as many success conditions as possible so that it can proceed with construction in the context of the current market situation,” said Councilor Alia Hassan- Cournol in a written statement from the Cabinet.

“Short and temporary” stop

The latter also assured that this situation has “no impact” on the schedule for the delivery of social housing, as they are planned “in later phases”.

Since Monday, the Journal has been trying to obtain explanations from real estate developer Rachel Julien.

He finally responded Tuesday afternoon via email through a public relations firm to confirm the district's information. This “short and temporary” shutdown of the construction site will have no impact on the schedule, assured Sabrina Duguay, spokeswoman for Rachel Julien.

Canoë is a major project that needs to deliver more than 830 residential units and 130 shared apartments. Last fall, the city of Montreal named it one of the metropolis' three most important social housing projects.

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Bitcoin hits a new all-time high around $69,000 before crashing

Business News / Ashley Cornell, email: [email protected]

Bitcoin (BTC-USD) hit an all-time high on Tuesday before falling back as some investors locked in their profits.

A new excitement around the world's largest cryptocurrency caused the price to rise to $68,869, surpassing the previous high of $68,789 set on November 10, 2021. Then it fell back below the $60,000 mark within a few hours .

The new high reinforced a remarkable comeback by Bitcoin after a 2022 crash that left investors with huge losses and triggered the demise of several major industry players, including cryptocurrency exchange FTX and its founder Sam Bankman-Fried.

The dramatic decline from Tuesday's high reminded us how volatile this digital asset still is. At one point it was down 11%, a decline last seen during the turmoil of 2022.

So far this year, Bitcoin has seen a wave of excitement sparked by a series of spot Bitcoin exchange-traded funds that began trading in January. These funds gave everyday investors comprehensive access to the digital asset and raised anticipation for a record year.

Read more: With it approaching $69,000, does Bitcoin deserve a place in your portfolio?

“Demand for these ETFs has far exceeded expectations,” Matt Hougan, chief investment officer of Bitwise Asset Management, told Yahoo Finance. Bitwise was among the firms that received the green light from the Securities and Exchange Commission to manage one of these funds.

Several asset managers now believe that the digital asset could rise to over $100,000 before the end of 2024.

Investors are also bidding higher on other cryptocurrencies and related stocks. Ether (ETH-USD), the second-largest cryptocurrency, has outperformed Bitcoin by more than 7% year-to-date. Several so-called meme coins – such as Dogecoin (DOGE-USD), Shiba Inu (SHIB) and Dogwifhat (WIF) – are also booming.

A sign of the new mania surrounding Bitcoin is the trading activity of the ETFs launched in January. They've raised nearly $8 billion from investors in just two months, with the lion's share going to Wall Street heavyweights like BlackRock (BLK) and Fidelity Investments.

The story goes on

This activity has been a boon for major crypto trading venues including Coinbase (COIN) and Robinhood (HOOD). Coinbase is the crypto custodian for a number of these ETFs and earns fees tied directly to these products.

Demand for trading on Coinbase was so high last week that a snafu occurred, with some customers showing $0 balances in their accounts for part of a day. CEO Brian Armstrong assured customers that their funds were safe.

Some individual customers reported that their account had zero funds again on Monday.

Coinbase CEO Brian Armstrong looks on at the Piper Sandler Global Exchange and FinTech Conference in New York City, U.S., June 7, 2023. REUTERS/Brendan McDermid

Brian Armstrong, CEO of Coinbase. (Brendan McDermid/Portal) (Portal / Portal)

supply and demand

A basic law of economics also plays a role in the new market hectic surrounding Bitcoin: supply and demand. The new demand from ETFs means that, on average, more Bitcoins are being purchased than new coins are being created each day.

The new ETFs have been buying an average of 3,320 to 4,300 coins daily since early February, three analysts who work for crypto money managers said last week.

This is significantly more than the 900 coins that the Bitcoin network creates daily during the same period.

With the “halving” set to take place 46 days from Monday, more Bitcoin supply issues are expected this year.

When it was founded in 2009 by pseudonymous developer Satoshi Nakamoto, Bitcoin was programmed with a fixed delivery schedule that halved every four years.

After this next cut, called halving, the daily supply of new coins will be 450 instead of 900.

“We may be in the best position here,” Mark Connors, head of research at crypto asset manager 3iQ, told Yahoo Finance. “We cannot produce more Bitcoin to meet demand.”

Connor's firm has set its mid-to-high price target for Bitcoin this year at $160,000 to $180,000. A staggering target of $350,000 to $450,000 per coin is expected next year.

Another asset manager, VanEck, set a price target of $80,000 for Bitcoin by 2024 last quarter.

“These estimates are now admittedly somewhat outdated,” said Matthew Sigel, head of digital asset research at VanEck.

In addition to the demand for ETFs, there are certainly other factors at work in the current supply shortage.

For example: According to 21Shares, the US government has seized 215,000 BTC since 2020. The stockpile includes seizures from various seizures, such as the hacking of the crypto exchange Bitfinex in 2016.

The fact that they are currently only held and not sold has limited supply. But that could change if the government needs to distribute some of it to victims, which may mean a sale.

When the asset price rises, many institutional buyers also need to take profits to maintain balance in their portfolios. This could also impact the imbalance between supply and demand.

There are also certainly less fundamental and more psychological factors driving this new rally, including fear of missing out.

Interest in Bitcoin across the U.S. population is far from peaking compared to previous rallies, Alex Thorn, head of research at Galaxy Digital, said by email on Monday.

According to Thorn, Google searches for “Bitcoin” and retail crypto app usage are well below levels seen in the last bull market.

“We haven’t even come close to reaching the heights that this is likely to reach,” Thorn added.

David Hollerith is a senior reporter at Yahoo Finance, covering banking, crypto and other financial areas.

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