An advertisement for bitcoin, one of the cryptocurrencies, is displayed on a building in Hong Kong, on Nov. 18, 2021. Bitcoin briefly touched an all-time high Tuesday of more than US$69,000 before losing thousands of dollars of value within hours. THE CANADIAN PRESS/AP-Kin Cheung
TORONTO – Bitcoin briefly touched an all-time high Tuesday of more than US$69,000 before losing thousands of dollars of value within hours.
The record high surpassed the level bitcoin previously hit in November 2021, before falling below US$17,000 at the start of last year under pressure from rising interest rates and the downfall of major crypto exchange FTX.
As of midday Tuesday, the cryptocurrency was trading a little over US$64,0000, according to Coindesk.
Alfred Lehar, a finance professor at the University of Calgary’s Haskayne school of business, says the debut in January of bitcoin-focused exchange traded funds (ETFs) in the U.S. has been the biggest price driver lately.
While Canada has had bitcoin ETFs for years, the regulatory approval of U.S.-based options has attracted billions of dollars of investments.
Lehar says the rise in prices should make it easier for companies in the sector to raise money and innovate on blockchain-based systems.
This report by The Canadian Press was first published March 5, 2024.
