Bitcoin has reached an all-time high above $72,000 on Monday, continuing its upward trajectory as demand for the leading cryptocurrency shows no signs of declining, according to sources from Reuters.
Bitcoin’s latest surge, which peaked at $72,739, was accompanied by a 4.4 per cent increase, with the cryptocurrency currently valued at $72,649.
The surge has been attributed to a huge influx of capital into new spot bitcoin exchange-traded funds and optimistic expectations of a potential interest rate cut by the Federal Reserve.
“The recent surge in Bitcoin’s value…underscores the remarkable strength and resilience of the leading cryptocurrency. This achievement not only marks a significant milestone but also reflects the continued confidence and demand in the market” Reuters quoted Bitfinex analysts as saying.
DailyFX strategist Nick Cawley noted, “Bitcoin has started the week with a surge, dragging the rest of the cryptocurrency space higher with it.”
Flows of capital into the top 10 US spot bitcoin exchange-traded funds reached nearly $2 billion, despite slowing to a two-week low in the week leading up to March 8.
As Bitcoin continues its ascent, experts highlight the upcoming “halving” event in April, which will tighten the supply of bitcoin.
This event occurs every four years, reducing the rate at which new supply enters circulation and diminishing the reward for crypto miners.
Such halving events historically provide support to the cryptocurrency’s price.
Despite the recent surge, the unpredictable nature of Bitcoin’s price trajectory remains a challenge, with the cryptocurrency having less than two decades as a financial asset.
The Financial Conduct Authority (FCA) in the UK has joined the list of regulators allowing digital asset trading products.
The FCA announced its approval for recognised investment exchanges to launch crypto-backed exchange-traded notes (ETNs), cautioning that these products should be restricted to professional investors.
The FCA expressed concerns about the potential harm to retail investors from crypto ETNs, while acknowledging the growing demand within the investment community for such products.
Data from the US Commodity Futures Trading Commission reveals that asset managers now hold the largest bullish position in bitcoin futures on record.
The net long position held by asset managers, often considered indicative of institutional investors’ holdings such as mutual funds and pension funds, rose to 15,531 lots, valued at $5.5 billion based on the current bitcoin price.
Meanwhile, the cryptocurrency Ether experienced a 3.97 per cent rise, reaching $4,062.07, driven by speculation that US regulators may approve spot ether ETF listings this year, resulting in a 75 per cent increase in its value in 2024.
Additionally, for crypto stocks, Coinbase’s shares rose by 2.8 per cent, while crypto miners Riot Platforms and Marathon Digital saw declines of 2.2 per cent and 6.1 per cent, respectively.
(With inputs from Reuters)