Bitcoin Hits Record High of $72,000 Amidst Continued Surge

Bitcoin reached an all-time high above $72,000, showcasing the cryptocurrency’s strong momentum. At its peak, Bitcoin soared to $72,739 before settling at $72,649, marking a 4.4 percent increase, on Monday.
Bitcoin businessThe surge in Bitcoin’s value has been attributed to several factors, including a significant influx of capital into new spot bitcoin exchange-traded funds and anticipation surrounding potential interest rate cuts by the Federal Reserve. Analysts at Bitfinex emphasized the strength and resilience of Bitcoin, highlighting the market’s sustained confidence and demand, Reuters news report said.

Despite a slight slowdown in capital flows into the top ten U.S. spot bitcoin exchange-traded funds, which reached a two-week low of nearly $2 billion in the week leading up to March 8, market sentiment remains bullish. Nick Cawley, a strategist at DailyFX, noted that Bitcoin’s surge at the start of the week has lifted the entire cryptocurrency market.

Furthermore, anticipation is building for the upcoming “halving” event in April, which will further restrict the supply of Bitcoin. This event, occurring every four years, reduces the rate at which new Bitcoin enters circulation and diminishes the reward for crypto miners, typically providing support for the cryptocurrency’s price.

However, the volatile nature of Bitcoin remains a point of contention among investors. Despite its meteoric rise, memories of the cryptocurrency’s crash in November 2021 loom large, when Bitcoin halved in value, causing significant losses across the crypto industry.

In regulatory news, Britain’s Financial Conduct Authority (FCA) announced on Monday its decision to permit recognized investment exchanges to launch crypto-backed exchange-traded notes (ETNs). These products, tailored for professional investors such as investment firms and credit institutions, have raised concerns about potential harm to retail investors, prompting caution from the FCA.

Nevertheless, demand for digital asset products continues to grow among institutional investors. Asset managers now hold the largest bullish position in bitcoin futures on record, with a net long position worth $5.5 billion based on current bitcoin prices, according to weekly data from the U.S. Commodity Futures Trading Commission.

Meanwhile, Ethereum, the second-largest cryptocurrency, experienced a 3.97 percent rise, reaching $4,062.07, its highest level in two years. Speculation surrounding the potential approval of spot ether exchange-traded funds (ETFs) by U.S. regulators has been a driving force behind Ethereum’s 75 percent surge this year.

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