Scarcity has long been seen as a key factor supporting Bitcoin, and next month sees its fourth “halving”, with production about to be cut 50 per cent. Bitcoin rallied in the months following its last halving in May 2020, and speculators are betting on another price surge.
The decision by UK regulators to give the green light to exchange-traded notes tied to Bitcoin has also helped sentiment. However, the real game-changer has been January’s launch of multiple Bitcoin exchange-traded funds in the US, which has given the cryptocurrency a new respectability.
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