Bitcoin’s price set a new record before falling back severely – liberation

Bitcoin reached a new historical record on Tuesday, March 5, inspired by the excitement in the cryptocurrency sector after the approval of a new type of investment in the American market, indexing these financial products and accessibility to a wide audience. Cryptocurrency Star rose to $69,191.94, surpassing its previous high of $68,991 recorded in November 2021. Three hours later, its price was down nearly 10% to $65,000.

The first of the cryptocurrencies by capitalization, which is worth more than 1,300 billion dollars as of today according to the Coingecko site, has been on a crazy ride for several months. Its price has soared more than 50% since the start of the year alone, and has tripled in the past year, a spectacular rise after prices plummeted in late 2022 following the collapse of several giants in the sector. At a previous peak, Bitcoin fell to around $15,000 in November 2022 after the FTX exchange platform, a major company in the sector, went bankrupt.

A mirage of incredible benefits

Her boss at the time, Sam Bankman-Fried, was accused along with other executives of using client accounts without her knowledge to fuel their own investment company’s speculative operations. Regulators, who are still struggling to effectively regulate cryptoassets, regularly warn against the mirage of staggering profits that can lure buyers into betting big and incurring big losses or falling into a system of fraud.

In 2017, the previous cycle of frenzied enthusiasm was already followed by a collapse in prices. “It’s rarely a good idea to buy following a price rise, Laith Khalaf, an analyst at the British company AJ Bell, estimates. Previous episodes have shown that those who enter when the rampage reaches its peak suffer huge losses..