Bitcoin hits a new all-time high over $71,000

11 Mar 2024

Bitcoin surpassed $71,000 for the first time in history on Monday.

The price rose by 4.8% to reach $71,677 in European trading, Reuters reports, to bring this year’s gains up to 70%.

Since the US Securities and Exchange Commission gave the green light to spot Bitcoin exchange-traded funds (ETFs) in the US in January, the world’s number one cryptocurrency has been rising steadily.

Last week the Bitcoin price exceeded $70,000 for the first time ever, whilst the surge in Bitcoin’s price has lifted its total market cap to $1.40 trillion.

In addition, the world’s second-largest crypto, Ether, also crossed the $4,000 mark on Monday, its highest in around two years. In the year to date, speculation that US regulators could approve spot Ether ETFs has driven the price up 75%.

“Bitcoin has started the week with a surge, dragging the rest of the cryptocurrency space higher with it,” said DailyFX strategist Nick Cawley.

According to LondonCryptoClub founders, Bitcoin’s price rise can be attributed to the decision by the London Stock Exchange to accept applications for Bitcoin and Ether exchange-traded notes (ETNs), as well as the illiquid Asian market conditions, CoinDesk reports.

“It’s a confluence of factors. Asia is buying in an illiquid market coupled with continued positive news, with the London Stock Exchange just announcing it will take applications for BTC and ETH ETNs. The powerful demand-supply dynamic from the BTC ETFs continues unabated,” the founders said.

“Meanwhile, the macro, which had been a headwind, has now become a tailwind as US rates and the Dollar appear to have topped out and are turning lower. Additionally, as we approach key resistance levels, short-term speculative traders trying to call a top, short into these key levels and then get liquidated, causing a pseudo negative gamma effect which propels us higher,” they added.

Indeed, on Monday, the UK’s Financial Conduct Authority paved the way for institutional investors to develop exchange-traded notes backed by crypto assets. Subsequently, the London Stock Exchange announced its acceptance of applications for Bitcoin and Ether ETNs in Q2 this year.

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