Bitcoin surges past $72,000 in unstoppable rally

Bitcoin reached an unprecedented high on Monday, soaring above $72,000 as its upward momentum showed no sign of diminishing.

Publication: 12.03.2024 - 10:42
Bitcoin surges past $72,000 in unstoppable rally
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The cryptocurrency was trading up by 4.4% at $72,649, having peaked at $72,739 earlier in the day. This surge in value comes amid a significant influx of capital into new spot bitcoin exchange-traded funds (ETFs) and optimism that the Federal Reserve may reduce interest rates soon.

Analysts from Bitfinex highlighted the remarkable strength and resilience demonstrated by Bitcoin's recent surge. "This milestone not only signifies a significant achievement but also mirrors the ongoing confidence and demand in the cryptocurrency market," they noted in a research brief.

Despite a slowdown in investment flows into the ten largest U.S. spot bitcoin ETFs to a two-week low by March 8, nearly $2 billion was still invested, according to data from LSEG. Nick Cawley, a strategist at DailyFX, remarked, "Bitcoin's robust start to the week has uplifted the entire cryptocurrency sector."

April is expected to see a tightening in Bitcoin's supply due to the upcoming "halving" event, which cuts the rate at which new tokens are introduced and the reward for miners in half. This quadrennial adjustment typically supports the cryptocurrency's price.

Predicting Bitcoin's price trajectory remains a formidable challenge given its relatively short history as a financial asset. The cryptocurrency's price plummeted just months after reaching a record high in November 2021, highlighting the volatile nature of the market.

On the regulatory front, the UK's Financial Conduct Authority (FCA) announced on Monday its decision to allow recognized investment exchanges to offer crypto-backed exchange-traded notes (ETNs), though it cautioned that such products might pose risks to retail investors. These offerings are intended solely for professional investors, including investment firms and financial institutions.

Despite warnings, demand within the investment community continues to grow. Asset managers are now holding the largest bullish position in bitcoin futures ever recorded, with data from the U.S. Commodity Futures Trading Commission showing a net long position worth $5.5 billion.

Ether, another major cryptocurrency, experienced a 3.97% increase to $4,062.07, reaching its highest level in two years. Speculation around the potential approval of spot ether ETFs by U.S. regulators has contributed to a 75% increase in its price this year.

In the realm of crypto stocks, Coinbase saw a 2.8% increase, while mining companies Riot Platforms and Marathon Digital experienced declines of 2.2% and 6.1%, respectively.

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