عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Bitcoin’s Strong Comeback: Heading Toward $100,000 Mark?

The logo of the US Securities and Exchange Commission and Bitcoin with the words “Approval of Exchange-Traded Funds” (Reuters)
The logo of the US Securities and Exchange Commission and Bitcoin with the words “Approval of Exchange-Traded Funds” (Reuters)
TT
TT

Bitcoin’s Strong Comeback: Heading Toward $100,000 Mark?

The logo of the US Securities and Exchange Commission and Bitcoin with the words “Approval of Exchange-Traded Funds” (Reuters)
The logo of the US Securities and Exchange Commission and Bitcoin with the words “Approval of Exchange-Traded Funds” (Reuters)

Bitcoin, the top cryptocurrency, has bounced back strongly, recovering all losses since the crypto market downturn in May 2022. Today, it’s steadily nearing its record high of $64,000, last seen in November 2021.

With investors rushing into cryptocurrency exchange-traded funds (ETFs), Bitcoin's price is rising rapidly, bringing it back to early 2021 levels.

The value of Bitcoin, the biggest cryptocurrency by market cap, jumped 3.4% to $62,205 after briefly touching $63,933 overnight Thursday, its highest level since late 2021.

This rise shows renewed confidence in the cryptocurrency market, helped by ETFs making crypto trading easier for investors.

US market sentiment towards Bitcoin is shifting positively, with big investors continuing to buy Bitcoin. This suggests long-term optimism and makes Bitcoin more appealing to investors looking for steady gains.

This surge is a big moment for Bitcoin and could lead to more growth in the future. It also shows Bitcoin is gaining acceptance as an investment.

Bitcoin holders expect the price to keep rising, possibly exceeding $69,000.

As Bitcoin hits new highs, 2024 is predicted to be its big year, with expectations reaching $100,000.

Bitcoin surged notably after approval was granted for cryptocurrency exchange-traded funds (ETFs) focused on immediate Bitcoin.

Optimism grew when the US Securities and Exchange Commission greenlit 11 of these funds in mid-January, allowing institutional investors to join the Bitcoin market, leading to increased demand and significant price rises.

These funds allow institutional investors to trade Bitcoin at its current price. Previously, Bitcoin ETFs were limited to trading futures contracts, complex financial tools suitable only for experienced investors.

After the approval of the first Bitcoin ETFs for immediate trading in the US, the world’s oldest cryptocurrency skyrocketed. It surged over 42% since the year began, jumping from under $50,000 at approval time to over $60,000 today.

Most Viewed

 
 
Business

Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
TT
TT

Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 12.46 percent growth in their net profits, which reached SAR 4.07 billion ($1.09 billion) during the second quarter of 2024, compared to SAR 3.62 billion ($965 million) during the same period last year.

They also recorded a 4.76 percent growth in revenues during the same quarter, after achieving sales worth more than SAR 26.18 billion ($7 billion), compared to SAR 24.99 billion ($6.66 billion) in the same quarter of 2023.

The growth in the revenues and net profitability is the result of several factors, including the increase in sales volume and revenues, especially in the business sector and fifth generation services, as well as the decrease in operating expenses and the focus on improving operational efficiency, controlling costs, and moving towards investment in infrastructure.

The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia. The fiscal year of Etihad Atheeb Telecommunications Company (GO) ends on March 31.

According to its financial results announced on Tadawul, Etihad Etisalat Company (Mobily) achieved a 33 percent growth rate of profits, bringing its profits to SAR 661 million by the end of the second quarter of 2024, compared to SAR 497 million during the same period in 2023. The company also achieved a 4.59 percent growth in revenues to reach SAR 4.47 billion, compared to SAR 4.27 billion in the same quarter of last year.

The Saudi Telecom Company achieved the highest net profits among the sector’s companies, at about SAR 3.304 billion in the second quarter of 2024, compared to SAR 3.008 billion in the same quarter of 2023. The company registered a growth of 4.52 percent in revenues.

On the other hand, the revenues of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) increased by about 6.69 percent, as it recorded SAR 2.55 billion during the second quarter of 2024, compared to SAR 2.39 billion in the same period last year.

Commenting on the quarterly results of the sector’s companies, and the varying net profits, the head of asset management at Rassanah Capital, Thamer Al-Saeed, told Asharq Al-Awsat that the Saudi Telecom Company remains the sector leader in terms of customer base expansion.

He also noted the continued efforts of Mobily and Zain to offer many diverse products and other services.

Financial advisor at the Arab Trader Mohammed Al-Maymouni said the financial results of telecom sector companies have maintained a steady growth, up to 12 percent, adding that Mobily witnessed strong progress compared to the rest of the companies, despite the great competition which affected its revenues.

He added that Zain was moving at a good pace and its revenues have improved during the second quarter of 2024. However, its profits were affected by an increase in the financing cost by SAR 26.5 million riyals and a rise in interest, while net income declined significantly compared to the previous year, during which the company made exceptional returns.