Bitcoin reached a record high of $72,000 on Monday, as the largest cryptocurrency’s rise showed no signs of slowing. Bitcoin was last up 4.4% to $72,649 after reaching a high of $72,739.
The world’s most valuable cryptocurrency has been buoyed by a rush of investment into new spot bitcoin exchange-traded funds and expectations that the Federal Reserve would soon lower interest rates.
The recent increase in Bitcoin’s value demonstrates its strength and endurance as the main cryptocurrency.
This achievement not only represents a significant milestone, but it also indicates the market’s ongoing confidence and demand,” Bitfinex analysts stated in a research report.
Flows of capital into the ten largest US spot bitcoin exchange-traded funds dropped to a two-week low in the week ending March 8, but still totaled about $2 billion, according to LSEG statistics.
“Bitcoin has started the week with a surge, dragging the rest of the cryptocurrency space higher with it,” DailyFX strategist Nick Cawley said.
The supply of bitcoin, which is limited to 21 million tokens, is expected to tighten in April, when the so-called “halving” event occurs.
Every four years, the rate at which new supply enters the market, as well as the reward for crypto miners, is halved, which tends to support the price.
Bitcoin’s price trend remains incredibly difficult to anticipate because it has only been a financial asset for less than two decades.
In November 2021, only months after retail excitement helped drive bitcoin to its previous high, the cryptocurrency plummeted, wiping out half of the crypto sector.
Britain’s financial watchdog on Monday became the latest regulator to open the way for digital asset trading products, announcing that it will now enable recognised investment exchanges.
The Financial Conduct Authority (FCA) of the United Kingdom stated that these products will only be offered to professional investors, such as investment firms and credit institutions allowed to operate in financial markets.
The FCA cautioned that crypto exchange traded notes (ETNs), which are bonds issued by financial institutions to mirror the performance of underlying assets, could hurt regular investors.
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