Bitcoin surged today, with its price climbing 4.24% ($972.9) to $23,944.5 [2], marking a new all-time high and continuing the bullish momentum seen in recent weeks. This bullish movement is being driven by a surge of new investors, with more than half of all current bitcoin holders having bought in the past year [3]. The year 2020 saw an incredible 300% rise in the bitcoin price, ending the year at a record high of $29,374 [1], and the crypto market remains volatile despite this surge in price.
The recent collapse of FTX, a crypto exchange, has had a significant impact on the market, leading to a price crash in November and continued scrutiny from regulators [3]. However, after a slight recovery, Bitcoin is holding steady at $17,000 and has reclaimed the $18,000 level as of late November 2022 [3]. This surge in its price has been driven by a combination of factors such as the increasing demand for digital currencies and the low supply of Bitcoin due to its fixed supply of 21 million [1].
References: [1] Bitcoin Price | BTC Price Index and Live Chart – CoinDesk [2] Bitcoin Price – YCharts [3] Bitcoin Price Tracker (BTC/USD) – TIME
Bank of England raises interest rates by 0.5 percentage points to 4%
The Bank of England has increased interest rates by half a percentage point to a 15-year high of 4 per cent [1], as the Monetary Policy Committee voted by a majority of 7–2 to increase Bank Rate by 0.5 percentage points, to 4% [2]. The rate increase is the tenth consecutive one, and is intended to control inflation despite falling gas prices. The Bank of England is concerned about wage growth, which could keep inflation high, as it currently stands close to 40-year high of 10.5% [2].
This increase will have a major impact on the 2.2 million people with a variable rate mortgage, and more than a million households that must renew their fixed-rate deals this year [2]. The rate increase also highlights the divergence between European and Japanese central banks and the Federal Reserve, as the ECB raised its key rate to 2.5%, while the Fed raised rates to 4.5% to 4.75% [3]. This divergence in rates shows the different levels of confidence among central banks in the economy [3].
References: [1] Bank of England raises interest rates by 0.5 percentage points … [2] Bank of England raises interest rates to 14-year high of 4% [3] ECB Raises Interest Rate by Half Percentage Point – WSJ
Is Cryptocurrency a Good Investment in 2023?
Cryptocurrency could be a good investment for those who are willing to take the risk and have a long-term outlook. Bitcoin, in particular, could be a good investment, as it has the potential to disrupt the traditional monetary system and has been gaining popularity among investors.
Despite its volatility and risk, the cryptocurrency market has seen promising growth and El Salvador became the first country to make Bitcoin a legal tender in 2021. As with any investment, however, it is important to do your own research before investing and understand the potential risks and rewards.
