Bitcoin Rally Shines Spotlight On Investor Risks

A much-anticipated US approval of wider bitcoin trading has helped the world's biggest cryptocurrency reach 20-month heights, risking however pain for new investors unaccustomed to its volatility

London, (UrduPoint / Pakistan Point News - 7th Dec, 2023) A much-anticipated US approval of wider bitcoin trading has helped the world's biggest cryptocurrency reach 20-month heights, risking however pain for new investors unaccustomed to its volatility.

Bitcoin this week reached above $44,000 for the first time since April last year, yet still remains far from a record-peak of almost $69,000 in 2021.

The recent surge has been driven by speculation around the creation of a so-called exchange-traded fund for the asset, which would directly track the price of bitcoin.

Spot bitcoin ETF would allow more of the general public to invest in the cryptocurrency without having to directly buy it.

"The introduction of bitcoin ETFs has the potential to improve market accessibility for institutional and non-professional investors, by providing (them) with a regulated path," Jeff Billingham, director of strategic initiatives at crypto group Chainalysis told AFP.