Posted by Xoken.org – Following the collapse of FTX at the end of 2022 and the declining value of cryptocurrencies, this provides a gloomy outlook for the digital asset market more than a year later.
Nonetheless, in late 2023 to early 2024 the crypto market recovered. The prices of several crypto assets including Bitcoin reached new highs at the beginning of the first quarter of 2024. Commenting on this, Co-Founder & Co-CEO Reku Jesse Choi, announced that their company had started to make a profit.
“I am happy to share that the first quarter of 2024 is the best for us in the last two and a half years, both in terms of trading volume and financial results,” said Choi, quoted from a press release, Friday (24/5/2024).
Choi added, not only was it the exchange’s best quarter in terms of volume, but it was also very profitable. He revealed that the profit margin exceeds 50% which is a significant achievement.
Choi explained the significant revival in the crypto market in 2024, especially with Bitcoin reaching an all-time high, can be largely attributed to two main factors namely the Bitcoin halving event, and wider recognition of the crypto sector through the introduction of a Bitcoin ETF by BlackRock.
Such a reduction in the number of new Bitcoins introduced causes the price of Bitcoin to rise, as reduced supply with steady or increasing demand tends to push the price up.
The market is paying close attention to this halving and sees it as a favorable event for Bitcoin’s value.
Bitcoin ETF Launching
Then the launch of BlackRock’s Bitcoin ETF has played a significant role in legitimizing crypto in the institutional institutional landscape.
These ETFs allow greater institutional and retail investment exposure, increasing Bitcoin’s liquidity and integrating it into broader financial markets.
BlackRock’s move is particularly influential due to its position as the world’s largest asset manager, adding a layer of credibility and stability to a crypto market that was previously considered too volatile and risky for most investors.
This ETF not only promises investment in Bitcoin but also promises more accurate price tracking and potentially lower fees compared to other investment methods.
These developments together have driven bullish sentiment in the global crypto market, leading to increased adoption and investment, from both institutional investors and retail traders, thereby pushing the price of Bitcoin to new levels.