Daily Management Review

Bitcoin Reaches A Record High Of $72,000 Amid Escalating Demand


Bitcoin Reaches A Record High Of $72,000 Amid Escalating Demand
Bitcoin reached a record high of more than $72,000, demonstrating that the biggest cryptocurrency's rise was unstoppable. Bitcoin reached a high of $72,739 and was last up 4.4% at $72,649.
The world's most valuable cryptocurrency has experienced a surge in value due to expectations that the Federal Reserve would soon lower interest rates and a rush of money into recently launched spot bitcoin exchange-traded funds.
"The recent surge in Bitcoin's value ... underscores the remarkable strength and resilience of the leading cryptocurrency. This achievement not only marks a significant milestone but also reflects the continued confidence and demand in the market," Bitfinex analysts said in a research note.
According to LSEG data, capital inflows into the top 10 U.S. spot bitcoin exchange-traded funds decreased to a two-week low in the week preceding March 8 but remained close to $2 billion.
According to DailyFX strategist Nick Cawley, "Bitcoin has started the week with a surge, dragging the rest of the cryptocurrency space higher with it."
The supply of bitcoin, which has a 21 million token cap, is expected to tighten in April during the so-called "halving" event.
The rate at which new supply is added to the market and the amount paid to cryptocurrency miners is cut in half every four years, which helps to keep the price stable.
With fewer than 20 years of experience as a financial asset, it is still quite difficult to anticipate the price trend of bitcoin. In November 2021, a few months after the retail euphoria had propelled bitcoin to its previous peak, the cryptocurrency plummeted, erasing half of the crypto sector in the process.
The Financial Conduct Authority of Britain said on Monday that it will now allow accredited investment exchanges to introduce exchange-traded notes backed by cryptocurrencies, making it the most recent regulator to open the door for digital asset trading products.
The Financial Conduct Authority (FCA), the UK regulator, stated in a statement that these products would only be accessible to professional investors, such as investment firms and credit institutions allowed to operate in financial markets.
Exchange traded notes (ETNs) that follow the performance of underlying assets and are issued by financial institutions have raised concerns from the FCA about potential harm to individual investors.
Still, the investment community as a whole is seeing an increase in demand.
The largest ever bullish position in bitcoin futures is currently held by asset managers, according to weekly statistics from the U.S. Commodity Futures Trading Commission.
Asset managers' net long position, which is typically understood to reflect institutional investor holdings like mutual funds and pension funds, increased to 15,531 lots in the week leading up to March 5; at the current price of bitcoin, this represents a $5.5 billion stake.
Ether reached $4,062.07, up 3.97% from its peak in the previous two years. The price of spot ether ETFs has increased by 75% this year due to speculation that U.S. regulators may authorise their listing this year.
Coinbase had a 2.8% increase in share price when it opened a new tab, whereas cryptocurrency miners Riot Platforms and Marathon Digital saw 2.2% and 6.1% declines, respectively.