Bitcoin surpasses $30,000 for the first time in ten months

Topline

The price of bitcoin rose above $30,000 for the first time since June on Tuesday as the cryptocurrency continues a rally that has seen its price nearly double since the start of the year.

Bitcoin crossed the $30,000 mark for the first time since June 2022 on Tuesday.

Getty Images

Highlights

The price of the world’s most valuable cryptocurrency stood at $30,100 early Tuesday morning, up more than 6.5% in the past 24 hours.

The value of bitcoin has increased by more than 80% since the start of the year, rising from $16,836.

Ether, the world’s second-largest cryptocurrency, also saw its value surge on Tuesday as it topped $1,900 for the first time since August.

Key Context

The price of bitcoin fell sharply last year after the crypto industry became mired in multiple scandals, including the collapse of the Terra/Luna tokens, the bankruptcies of the crypto lender Celsius and the exchange of FTX crypto. The reason for bitcoin’s current rally is partly attributed to the expectation that upcoming inflation figures could cause a pause in the Federal Reserve’s ongoing rate hikes, according CNBC. On top of that, Bloomberg reportsthe current low trading volume of the cryptocurrency may also amplify the price spike.

Large number

$68,789.63. This was the price of bitcoin in November 2021, when its value was at an all-time high.

To monitor

Even as bitcoin continues to rally, some of the biggest players in the crypto industry are facing a crackdown from regulators. Last month, the Commodity Futures Trading Commission (CFTC) accused Binance, the world’s largest crypto exchange, and its billionaire founder Changpeng Zhao for breaking commodity trading laws. In its statement, the CFTC accused the company of conducting “illegal operations in the digital asset space” and alleged that Zhao was deliberately circumventing US law. Another major crypto exchange, Coinbase, disclosed last month that he had received a Wells notice from the Securities and Exchange Commission. The notice says the SEC has identified what it believes to be potential regulatory violations by the company.