Recently the Bitcoin Angola Community lamented ban on mining cryptocurrencies throughout the national territory, with one of the experts on the matter guaranteeing that, “The Government could create a law, with specific contracts, both for natural and legal persons, that allows the fair price to be charged”.
On the other hand, good news for the community emerged this week, Bitcoin reached a new record price of more than 70.000 US USD, as the UK financial regulator said it would allow the trading of securities backed by cryptocurrencies. This value was reached on Monday (11/03/2024). The cryptocurrency reached a new high of 72.398 on that date, having surpassed its previous high of November 2021 of almost 69.000 USD last week.
What could be behind these changes?
Among the reasons are approval of ETFs (Investment fund that tracks the performance of an underlying asset), and halving event of new Bitcoins. With the approval of ETFs of Bitcoin, trading this cryptocurrency in the USA has become easier. ETF means Exchange Traded Fund, translated as “exchange-traded fund”, also called index fund.
Securities and Exchange Commission Chairman Gary Gensler has also expressed skepticism toward bitcoin despite the approval, referring to it in January as a “speculative and volatile asset” used for illicit activities including ransomware and terrorist financing.
An upcoming bitcoin “halving”, in which the amount of new bitcoins generated is reduced, is also expected to support the currency, causing a reduction in supply – therefore increasing the price.
Neil Wilson, chief analyst at broker Finalto, said the FCA's move was a “positive” sign for the cryptocurrency market. He added that “parabolic” market movements – referring to sharp price increases – tend to end in a big pullback, but “we can no longer be sure with bitcoin.”
Os ETFs are also used to replicate stock indices, investors can now benefit or not from the increase in price through shares in these investments. Bitcoins could already be traded in the US, but only in accounts on specially designed crypto exchanges or privately in so-called digital wallets.
