The value of Bitcoin has risen to over $51,000 per token, a notable landmark in the cryptocurrency's long struggle to recover.
The total amount of Bitcoin in circulation is now worth over $1 trillion for the first time since 2021, with individual tokens worth approximately $51,700 at midday on Wednesday.
"Bitcoin has broken through the $50,000 barrier and will test $52,000 despite a [Consumer Price Index] release yesterday that has all but killed the chances of a FED rate cut," Christopher Alexander, chief analytics officer of Pioneer Development Group, told FOX Business.
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The steady climb is a relief to cryptocurrency investors who held on to their assets after its tremendous collapse in value in the past few years.
Bitcoin, the original cryptocurrency that is often used as a measuring stick for all other tokens, hit a peak value of $68,982.20 in November 2021.
It saw a sharp decline until the beginning of 2022, when it began to recover from approximately $35,000 to approximately $46,000 in April 2022 – followed by a total collapse to just over $16,000 by the year's end.
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Some investors saw the collapse as a goldmine and bought up tokens during the fall, now raking in the bounce-back.
"For the Bitcoin community, there is a hardcore group called the Maximalists, known as 'Bitcoin Maxis,' who have been buying the entire time the price was depressed," said Alexander.
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He continued, "The Maxis are diehards who believe in Bitcoin almost as an article of faith. Interestingly, this is what gives Bitcoin and other cryptocurrencies value, since like the dollar it is not backed by anything other than belief."
Alexander told FOX Business that the biggest concern hanging over investors' heads is the federal government's handling of the crypto ecosystem, which extends far beyond just Bitcoin.
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"The biggest threat to Bitcoin stability at the moment is the U.S. government's confusing regulation by enforcement of crypto exchanges by the SEC," he told FOX Business. "The crypto and blockchain industry needs clear rules provided by the SEC so that the American public can take advantage of the incredible opportunities blockchain provides over the next year."
The introduction of spot Bitcoin exchange-traded funds earlier this year presents an opportunity to drastically change the crypto market, making the future of blockchain currencies and assets hard to predict.
