Bitcoin peaks at $72,000+, sets new record.
Bitcoin surged to a record high above $72,000 on Monday, with its value rising 4.4% to $72,649. This surge is driven by increased investment in new bitcoin exchange-traded funds and expectations of a Federal Reserve interest rate cut.
Analysts at Bitfinex note the strength of Bitcoin’s surge and its continued demand. Despite a slowdown in investment flows into U.S. bitcoin exchange-traded funds, there’s still significant investment, reaching nearly $2 billion. DailyFX strategist Nick Cawley remarks on Bitcoin’s influence on the wider cryptocurrency market.
Bitcoin’s upcoming “halving” event in April, where new supply issuance decreases, typically supports its price. However, predicting Bitcoin’s price remains challenging. British regulators announced approval for digital asset trading products, though warned of risks to retail investors.
Nevertheless, demand from asset managers is rising, with a record bullish position in bitcoin futures. Ethereum also rose in value, driven by speculation of potential U.S. approval for spot ethereum ETFs. In crypto stocks, Coinbase shares rose, while Riot Platforms and Marathon Digital fell.
