Bitcoin, the world's most well-known cryptocurrency, has recently experienced a sudden surge in value, surpassing the $50,000 mark per bitcoin. This is the first time it has reached such a high level since late 2021, and it has consequently pushed the total market value of the nearly 20 million bitcoins in circulation to an impressive $1 trillion. The anticipation of a substantial Federal Reserve 'bailout' on the horizon has further fueled this remarkable rise.
The impressive recovery of the bitcoin price, following its crash in 2022, can be attributed to the growing interest from Wall Street in the form of exchange-traded funds (ETFs) that include bitcoin. Major financial institutions such as BlackRock and Fidelity have been actively accumulating significant amounts of bitcoin, resulting in a surge in demand. As a result, a supply shock is looming on the horizon.
