MILESTONE | Bitcoin Hits $70,000 for the First Time in History

The recently approved U.S. spot Bitcoin ETFs have been popular and are likely the significant driver of the cryptocurrency's price movement.

Bitcoin continued its upward trajectory, reaching another all-time high at the beginning of the week with the leading cryptocurrency experiencing a 3% increase, to reach as high as $72,562, according to CoinGecko.

The cryptocurrency is up more than 50% in the last 30 days, breaking its $69k ATH, more than a month before its upcoming halving event.

Bitcoin in the Last 7 Days

The recently approved U.S. spot Bitcoin ETFs have been popular and are likely the significant driver of the cryptocurrency’s price movement. Recent data from CoinShares indicates that last week alone, crypto investment products experienced unprecedented inflows amounting to $2.7 billion. This brings the total for the year to $10.3 billion, nearing the record high of $10.6 billion observed in 2021.

Simultaneously, increased leverage within the cryptocurrency market has resulted in the most significant price fluctuations seen in almost a year. Funding rates have soared to their highest levels since January 2021, while bitcoin open interest has reached unprecedented heights.

At the same time, Ether surged past the $4,000 mark for the first time since December 2021, partly propelled by the momentum of Bitcoin.

Ether Last 7 Days

Investors are anticipating the Ethereum network’s upcoming major technological upgrade, known as ‘Dencun,’ scheduled by March 13 2024. Historically, the cryptocurrency has experienced a rally leading up to the upgrade, followed by traders selling off during the event.

The market is also buoyed by the decision announced by the U.K.’s Financial Conduct Authority to permit exchanges to list cryptocurrency-linked exchange-traded products (ETPs) for the first time. This move comes two months after the introduction of spot bitcoin ETFs in the United States.

Consequently the London Stock Exchange said it will begin accepting applications for the admission of Bitcoin and Ether Exchange-Traded Notes (ETNs) starting from the second quarter of 2024.

Unlike an ETF, which functions as a fund holding assets, an ETN (Exchange-Traded Note) represents an unsecured debt security issued by a bank. Typically, it is tied to a market index or another benchmark. An ETN commits to paying out the full value of the index, minus management fees, upon maturity.

Bitcoin bulls anticipate that this development will drive greater institutional investment into bitcoin and other cryptocurrencies. They argue that this influx of more substantial institutional capital will have a positive impact on prices as the market experiences increased participation from serious investors.




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