Bitcoin Peaks at Record $71,000 Amidst Intensifying Demand Surge

On Monday, Bitcoin reached an all-time high, surpassing $71,000, as the cryptocurrency’s remarkable surge continued unabated.

The Financial Conduct Authority in Britain joined other regulators in enabling recognized investment exchanges to introduce crypto-backed exchange-traded notes, further embracing digital asset trading products. During European trading, Bitcoin saw a 4.8% increase, hitting a record $71,677 and marking a 70% gain for the year.

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Bitcoin’s Value Surges on ETF Influx and Rate Cut Optimism; Capital Inflow Nears $2 Billion

The world’s most valuable cryptocurrency has experienced a surge in value, propelled by a substantial influx of capital into recently established spot bitcoin exchange-traded funds (ETFs), coupled with optimism surrounding the potential for a Federal Reserve interest rate reduction.

Despite a slight slowdown, the flow of capital into the top 10 U.S. spot bitcoin ETFs reached nearly $2 billion in the week ending March 8, based on data from LSEG. The week commenced with a significant surge in Bitcoin, elevating the entire cryptocurrency market, as highlighted by DailyFX strategist Nick Cawley. The limited supply of Bitcoin, capped at 21 million tokens, is poised to tighten further in April during the upcoming halving event.

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Bitcoin’s Upward Momentum Fueled by Halving Cycle and LSE’s ETN Acceptance Plans

Bitcoin’s price receives periodic support every four years as the release rate of new supply and miner rewards are halve. This trend tends to positively impact the cryptocurrency’s value. Additionally, the recent announcement that the London Stock Exchange (LSE) plans to accept applications for bitcoin and ethereum Exchange-Traded Notes (ETNs) in Q2 may have further fueled the recent upward momentum, according to DailyFX strategist Nick Cawley.

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The UK’s Financial Conduct Authority (FCA) announce that crypto exchange-trade notes (ETNs) will be in limit to professional investors, including authorize investment firms and credit institutions. Despite FCA warnings about potential harm to retail investors, demand is increasing within the investment community.

In a record bullish move, asset managers now hold the largest bitcoin futures position ever recorded, reaching 15,531 lots valued at $5.5 billion as of March 5. This surpasses their holdings in sterling at $2.78 billion and their bearish position in the Japanese yen against the dollar at $1.49 billion, according to LSEG data.

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Simultaneously, Ether experienced a 2.1% increase, approaching $4,000, its highest point in two years. Speculation of potential approval for spot ether ETF listings by U.S. regulators has contributed to a 75% surge in its price this year.