Bitcoin hits $71000 on Monday, setting a new record with no signs of slowing down anytime soon. This win for Bitcoin comes with the announcement by Britain’s financial watchdog.
According to the announcement, it will allow recognized investment exchanges to introduce crypto-backed exchange-traded notes, making it join other regulators in permitting digital asset trading products.
Bitcoin Price Today Hits $71000
Bitcoin price today increased by 4.8% to reach a record high of $71,677 during European trading, marking a 70% increase in gains for the year. The value of the cryptocurrency has increased due to the high money flowing into new spot bitcoin exchange-traded funds.
The rising Bitcoin price Today is also being influenced by expectations of a Federal Reserve interest rate cut.
According to the data released by LSEG, capital flowing into the top 10 U.S. spot bitcoin exchange-traded funds had reduced to the lowest point in two weeks by March 8, but the total had reached nearly $2 billion.
Nick Cawley, Strategist at DailyFX, said that the week started with bitcoin increasing and has pulled up the rest of the cryptocurrency market. Bitcoin’s supply, which is capped at 21 million tokens, is set to decrease further in April during the halving event.
Cawley said that every four years, the rate of new supply entering circulation and the reward for crypto miners is halved, which usually supports the price. He added that the earlier news that the LSE plans to accept applications for Bitcoin and Ethereum ETNs in Q2 might have resulted in the bitcoin price today.
According to the Financial Conduct Authority (FCA), the UK regulator has said that these products will only be allowed for professional investors like investment firms and authorized credit institutions that are currently operating in financial markets.
The FCA has said that people should be cautious of the crypto Exchange Traded Notes (ETNs), which are bonds that are issued by financial institutions, to take note of the performance of underlying assets, as it could be harmful to retail investors.
According to data released by the US Commodity Futures Trading Commission, there is a growing demand for cryptocurrency across the investment community, and asset managers are currently holding the largest bullish position in bitcoin futures ever recorded.
In the first week of March, the net long position that is usually helped by asset managers and represents holdings of institutional investors like mutual funds and pension funds has increased to 155531 lots, which has been valued at around $5.5 billion on the basis of the current price of bitcoin.
According to the LSEG data, the position of bitcoin is worth more than the assets’ managers’ holdings in sterlings, currently being valued at $2.78 billion, or their bearish position in the Japanese yen against the dollar, valued at $1.49 billion.
As the Bitcoin hits $70000, another cryptocurrency, Ether, increased by 2.1% to $4000, the highest it has been recorded in the last two years. The 75% increase this year is mainly due to speculation that US regulators might approve the listing of spot ether ETFs in 2024.
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