Bitcoin Surpasses US$71,000 Mark as Regulatory Approval Boosts Market Confidence

Bitcoin surged past $71,000, buoyed by regulatory approval allowing recognized investment exchanges to introduce crypto-backed exchange-traded notes. The Financial Conduct Authority’s decision has injected fresh momentum into the cryptocurrency market, fueling optimism among investors.

11 March 2024 – Bitcoin reached an all-time high of over $71,000 on Monday, continuing its upward trajectory without signs of slowing down. The Financial Conduct Authority (FCA) of Britain announced its approval for recognized investment exchanges to introduce crypto-backed exchange-traded notes, adding momentum to the cryptocurrency’s surge.

The cryptocurrency soared by 4.8% to hit a new record of $71,677 in European trading, with gains for the year totaling 70%. Increased investment in new spot bitcoin exchange-traded funds and anticipation of potential interest rate cuts by the Federal Reserve have contributed to Bitcoin’s rise. Despite a slowdown in capital inflows into the top 10 U.S. spot bitcoin exchange-traded funds, which reached nearly $2 billion in the week to March 8 according to LSEG data, the overall bullish sentiment prevails. DailyFX strategist Nick Cawley noted that Bitcoin’s surge has positively impacted the entire cryptocurrency market. Additionally, anticipation for the halving event in April, which will reduce the rate of new supply entering circulation and the rewards for crypto miners, is further driving Bitcoin’s price upwards. Cawley also highlighted the announcement that the London Stock Exchange (LSE) plans to accept applications for bitcoin and ethereum exchange-traded notes in the second quarter as a factor contributing to Bitcoin’s recent rally. – ref: Reuters

Author: Terry KS

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