Bitcoin made significant gains during Monday's trading session, marking a notable milestone by surpassing the $71,000 threshold and hitting a record high, as reported by news agency Reuters on March 11, 2024.
The Financial Conduct Authority (FCA) of Britain has recently joined the growing cohort of regulatory bodies embracing digital asset trading products. In a move aimed at further legitimizing cryptocurrencies in the financial landscape, the FCA disclosed its decision on Monday to authorize recognized investment exchanges to introduce crypto-backed exchange-traded notes (ETNs).
The surge in Bitcoin's value during European trading was particularly remarkable, witnessing a robust increase of 4.8 percent and reaching an unprecedented peak of $71,677. This surge underscores a cumulative gain of 70 percent since the onset of the year, reflecting heightened investor confidence in Bitcoin.
The recent uptick in Bitcoin's value can be attributed to multiple factors, including the influx of capital into newly established spot bitcoin exchange-traded funds (ETFs) and market anticipation of a potential interest rate cut by the Federal Reserve.
Despite a slight deceleration in the flow of capital into the top 10 US spot bitcoin ETFs for the week ending March 8, data from LSEG indicates a substantial inflow of nearly $2 billion.
DailyFX strategist Nick Cawley remarked to Reuters that Bitcoin's surge at the beginning of the week has exerted a buoyant effect on the broader cryptocurrency landscape, reflecting positive market sentiment towards Bitcoin.
Looking ahead, Bitcoin's forthcoming halving event scheduled for April is anticipated to further diminish its supply, consequently supporting its price by reducing the available supply in the market.
Furthermore, the London Stock Exchange (LSE) has announced plans to entertain applications for Bitcoin and Ethereum ETNs in the second quarter of the year, a development likely contributing to the recent upsurge in Bitcoin's price.
However, it's noteworthy that the FCA has stipulated that these crypto ETNs would exclusively cater to professional investors, including investment firms and authorized credit institutions, cautioning that crypto ETNs may pose risks to retail investors.
Despite regulatory cautions, the demand for cryptocurrencies continues to burgeon across the investment landscape, with Ethereum (ETH) also experiencing a price uptick, climbing by 2.1 percent and nearing the $4,000 mark, reaching its highest level in two years.
