Bitcoin has been on a roll recently. It set a record in April and has now soared past that with a value above $65,000 – a new record-high for the blockchain backed coin.
Bitcoin reached that milestone at 9:43am EST and is now trading at $66,000, according to Coindesk data. This record means that a resurgence may be on the way after an abysmal dive to as low as $29,800 in June.
Why did this happen? In a surprising move from the U.S., a futures exchange-traded fund, the ProShares Bitcoin Strategy ETF, was successfully launched on the New York Stock Exchange under the ticket ‘BITO.’ The ETF tracks Bitcoin futures contracts pegged to the future price of the cryptocurrency, and it rose nearly 5% on the first day of trading, according to CNBC.
Jesse Proudman, CEO of crypto robo-advisor, Makara, told CNBC,
People should be wary though as the last time Bitcoin hit these kinds of highs in mid-April, it dramatically lost almost half of its value by mid-July. It’s still highly volatile and unpredictable. Right now, there is nothing to guarantee it’s continued climb as it is just as likely to drop again. The price swings will be continuous and it’s something long-term crypto investors are just going to have to get used to.
Humphrey Yang, a personal finance expert behind Humphrey Talks, told Next Advisor, “I know these things are super volatile, like some days they can go down 80%. But if you believe in the long-term potential of [Bitcoin], just don’t check on it. That’s the best thing you can do.”
In addition, Ethereum also rose 7.4% to reach past $4,000 again. The world’s second largest traded cryptocurrency has almost reached its previous high of $4,380 from May.