On Thursday, BTC reached an eight-month high and surpassed $25,000 as the unstable cryptocurrency continues to grow despite pressure from US regulators.
The value of the digital coin has increased by 50% since the beginning of the year, but it is still a long way from its all-time high of $68,992 hit in November 2021.
On Thursday, BTC surpassed $25,000 for the first time since August, reaching $25,249, its highest level since June.
The markets, including cryptocurrencies, are being supported by a more upbeat view for the global economy, with the Paris and London stock exchanges setting record highs on Thursday.
According to Craig Erlam, analyst at online trading platform OANDA, “regulatory crackdowns continue to cause some uneasiness, but there’s certainly a rising sense of relief that the worst is behind it for the industry and 2023 might be a much better year.”
In response to the controversy generated by the recent insolvencies of FTX and Alameda Research, US authorities are tightening their control over the cryptocurrency industry.
The catastrophic collapse of FTX, once the most well-known cryptocurrency exchange in the world, left nine million users stranded, and US prosecutors prosecuted creator Sam Bankman-Fried for fraud.
US officials commanded cryptocurrency company Paxos Trust on Monday to stop creating the stablecoin BUSD, which is pegged to the dollar and is used by trading platform Binance.
According to Riyad Carey, an analyst at cryptocurrency data source Kaiko, “the third largest stablecoin was assigned an expiration date of February 2024 and the market has largely shrugged it off.”
Stablecoins don’t experience the price fluctuations that cryptocurrencies like Bitcoin have since they are backed by one or more national currencies and have a close to constant rate of exchange.